Investment banking heavyweights on Wall Street have commenced lavish events to court prospective buyers of Elon Musk’s SpaceX, ahead of its anticipated initial public offering (IPO) next week. These exclusive gatherings offer rare direct access to the rocketmaker’s senior executives. SpaceX is a pioneering rocketmaker, basing its lofty valuation on concepts like colonising Mars and establishing data centres in space. Planning to raise an unprecedented $75 billion, this would be the largest IPO in history, positioning SpaceX with an expected market capitalisation of $1.75 trillion, making it one of the world’s most valuable listed entities.
Elon Musk himself made a virtual appearance at a lead event, engaging with JPMorgan clients via video link. During the discussion, hosted by CEO Jamie Dimon, Musk revealed the IPO’s timing was prompted by a ‘massive new growth phase’ requiring substantial capital. He also expressed confidence in the company’s revenue projections, noting they had become ‘much more predictable’. SpaceX President Gwynne Shotwell and CFO Bret Johnsen attended JPMorgan’s event in person.
Major banks, including JPMorgan, Bank of America, and Morgan Stanley, are spearheading these high-profile events over several days. JPMorgan’s event saw around 3,500 clients tune in, with CEO Dimon emphasising equal treatment for individual and institutional investors. Bank of America, leading the U.S. retail distribution, transformed its Manhattan headquarters lobby with SpaceX rockets and imagery for its wealth management clients, planning interviews with Shotwell and Johnsen. Morgan Stanley will similarly host an event for its wealth management clients featuring key SpaceX executives.
Amidst the IPO fervour, SpaceX encountered a minor setback when S&P Global announced it would not alter its requirements for entry into major indices. This effectively rules out a swift inclusion for SpaceX in the benchmark S&P 500 index, despite its immense market value and anticipated listing.
