SpaceX, led by Elon Musk, has confidentially filed for a U.S. initial public offering (IPO), potentially setting the stage for the largest stock market listing on record. SpaceX puts more rockets in space than any other company and aspires to put artificial intelligence data centres in orbit, while running a lucrative satellite communications system that opens up much of the earth to the internet and is increasingly used in war. A public listing at a potential valuation of more than $1.75 trillion follows SpaceX’s merger with Musk’s AI startup, xAI.
SpaceX is hosting an analyst day on April 21, encouraging research analysts to attend in person, and is offering analysts an optional visit to xAI’s ‘Macrohard’ data centre site in Memphis on April 23. The company plans to hold a virtual session on May 4 to discuss financial models with banks’ research analysts. According to Shay Boloor, chief market strategist at Futurum Equities, much of the discussed $1.75 trillion value is based on the Starlink satellite business, with 9 million subscribers, defence contracts and its own data network.
SpaceX could seek to raise more than $50 billion in the IPO, surpassing the 2019 flotation of Saudi Aramco. This blockbuster debut could revitalise the IPO market after years of subdued activity. The company generated about $8 billion in profit on $15 billion to $16 billion of revenue last year. A listing would deepen analyst and investor scrutiny of ‘Muskonomy’ and bring renewed focus to how his companies are financed, governed and valued across markets.
Valuing the conglomerate is no simple task, but Musk’s leadership makes it easy for some investors. According to Kat Liu, vice president at IPOX, the business is operationally mature, technologically ahead in several key areas, and profitable, which provides a solid fundamental underpinning.
