Elon Musk’s SpaceX is reportedly lining up a powerhouse team of Wall Street banks to lead its highly anticipated initial public offering (IPO), signaling the company’s intent to take flight on the public markets.
According to reports, the US aerospace tech giant is considering Bank of America, JP Morgan, Goldman Sachs, and Morgan Stanley to spearhead the potentially record-breaking listing. This move comes as investors eagerly await a wave of high-profile tech IPOs, with SpaceX’s valuation potentially reaching an astonishing $800 billion.
Last year, SpaceX was reported to have held talks over a private share sale that would have valued the business at $400 billion, showcasing the company’s meteoric growth. Now, with plans to raise a staggering $25 billion, SpaceX’s IPO could be one of the largest global listings ever seen.
Musk, the world’s wealthiest individual with a $690 billion fortune, has previously revealed that SpaceX’s annual revenue is expected to reach $15.5 billion, with $1.1 billion coming from contracts with NASA. The company generates revenue from its reusable rocket deployments for missions such as launching satellites and resupplying the International Space Station, as well as its Starlink broadband service.
The potential SpaceX IPO comes amid a wave of anticipated tech listings, with AI firms OpenAI and Anthropic also rumored to be in the IPO pipeline. These tech “hectocorns” – companies valued at over $100 billion – are set to define the resilience of the stock market’s AI-fuelled momentum.
Analyst Neil Wilson of Saxo Capital Markets noted that while Musk’s ambitions to colonize Mars may be the “headline grabber,” investors will be keenly focused on SpaceX’s growth plans, such as its initiatives to deploy solar farms and data centers in orbit.
As the aerospace industry prepares for liftoff on the public markets, the success or failure of these high-profile tech IPOs will have far-reaching implications for the broader investment landscape.
