SpaceX Targets $1.75 Trillion IPO Valuation

If SpaceX goes ahead with its anticipated IPO, the US rocket maker is aiming to raise up to $75 billion, qz.com reported. That would easily surpass the previous record of $29.4 billion set by Saudi Aramco seven years ago. The space exploration business is also targeting a total valuation of around $1.75 trillion, according to Bloomberg and the Financial Times.

The Financial Times (FT) reported that the company's directors recently expanded their initial capital raising goal of $50 billion by another $25 billion. Given the proposed market capitalization, only five listed U.S. corporations would be worth more, the FT notes.

Regulatory documents for the share sale could be filed soon, preparing the company for a possible start of trading in June. The Financial Times reported that less than 5% of the company's total shares will be offered.

Five major financial institutions - Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley - have been selected to manage the transaction, but Bloomberg says the individual responsibilities of the banks are yet to be defined.

Financial advisers are also debating unconventional strategies to block the deal. The FT reported that options include completely scrapping the standard six-month insider trading freeze or implementing a gradual system that would allow backers to gradually liquidate their shares.

The pressure for a listing comes on the heels of a February acquisition of xAI shares. The merger consolidated the Grok artificial intelligence project and the X social network, along with Starlink, a broadband satellite operation that serves as SpaceX's primary source of cash flow, according to Bloomberg. The news agency attributed the growing need for outside capital to xAI operations, which spends about $1 billion every 30 days to maintain and expand its artificial intelligence hardware.

An internal company memo from December outlined how the capital infusion will be spent, according to Bloomberg. Planned investments include building a lunar outpost, funding orbital artificial intelligence hardware and developing the Starship vehicle.

The company could implement a special corporate governance framework to ensure that Elon Musk and other backers retain voting power after the listing.

News of SpaceX's potential bid has sent share prices of other publicly traded aerospace companies soaring. According to the BBC, Sidus Space's value rose by almost 19%, Intuitive Machines - by about 15%, and both Firefly Aerospace and Rocket Lab gained more than 10%.

A SpaceX listing that reaches the desired market capitalization would likely push Musk's personal fortune - currently estimated by Forbes at more than $820 billion - above the $1 trillion mark, according to the BBC.