The first step has been taken for what is expected to be the largest IPO in history. SpaceX, the aerospace technology company of billionaire Elon Musk, has filed its confidential application to go public in the United States.
According to two sources familiar with the matter, cited by the Financial Times (FT), the Texas-based company had filed the necessary documentation with the U.S. Securities and Exchange Commission (SEC) this week for its initial public offering (IPO).
At the end of March, the rocket manufacturer informed investors that it planned to raise approximately US$75 billion in its IPO, further increasing its previous forecast of US$50 billion.
The amount should easily surpass the US$29.4 billion raised by the Saudi oil company Saudi Aramco in its initial public offering in December 2019.
The company's goal is to reach a valuation of approximately US$1.75 trillion. In the United States, only Nvidia, Apple, Alphabet, Microsoft, and Amazon have larger market capitalizations.
The expectation is that the company will debut on the capital market by June, close to Musk's birthday on the 28th. Bank of America, Goldman Sachs, JPMorgan Chase, and Morgan Stanley have been selected to coordinate the IPO.
The confidential SpaceX document emerges days after Nasdaq implemented changes to its index inclusion methodology.
The exchange removed one of the conditions for companies to be included in the Nasdaq 100 index, which tracks the largest technology stocks in the United States. It previously required that at least 10% of a company's shares be available for public offering.
Nasdaq also stated that large companies will be able to join the Nasdaq 100 after 15 days of trading, reducing the current three-month waiting period. Critics argue that the accelerated inclusion of newly public companies in widely followed indices can distort price formation after the IPO.
But Nasdaq wasn't the only one that made moves to try and attract Musk's company. Earlier this month, the New York Stock Exchange announced the introduction of a "fast-track entry" rule in the NYSE 100 index for newly listed companies with a market capitalization exceeding that of the index's 50 largest companies.
According to Reuters , SpaceX will hold a day dedicated to analysts on April 21, encouraging in-person participation from research experts, according to a person familiar with the matter.
The company is also offering analysts an optional visit to xAI's Macrohard data center in Memphis, Tennessee, on April 23. It also plans to hold a virtual session on May 4 to discuss financial models with research analysts from banks.
A strong SpaceX debut could revitalize the IPO market after years of moderate activity. The expectation now is that investors will be attracted to Musk's brand, primarily due to its exposure to the rapidly growing space and satellite businesses.
The IPO confirmation comes as NASA prepares to launch four astronauts on the evening of Wednesday, April 1st, on a 10-day mission around the Moon, marking the most ambitious American space mission in decades.
SpaceX generated about $8 billion in profit, with revenue of $15 billion to $16 billion last year, according to Reuters .
A growing number of billionaires and private companies have been funding a new space race in the United States, investing heavily in rockets, satellite networks, and lunar ambitions, including SpaceX and Jeff Bezos' Blue Origin.
