The spotlight is back on the Space X IPO, long awaited on Wall Street. The space company headed by Elon Musk and which aims to make access to the Moon accessible to everyone and build data centers on our natural satellite, should land on the Nasdaq by June. A date that would have deeper meanings than purely financial timing, because it would coincide with Musk’s birthday which falls on June 28 and with a planetary alignment between Jupiter and Venus.
Musk raises the bar on collection
Elon Musk’s group expects to raise around $75 billion from the IPO. This was announced by the management of Space
The placement of Space
The reasons for the IPO
Despite the significant cash flow boasted by SpaceX, largely from satellite operator Starlink, which was previously expected to spin-off and go public in its own right, Musk’s space company would need much more money to finance its ambitions. According to Bloomberg, in an internal memo to employees in December, SpaceX said proceeds from the IPO will fund development of the Starship rocket, data centers for artificial intelligence in space and a base on the Moon.
Musk wants to place a third of the shares to the public
According to what was reported by Reuters, Musk is considering the possibility of reserving up to 30% of the shares being offered to retail investors, equal to at least triple the share which, in these cases, is traditionally reserved for individual investors. In normal cases, debut companies place no more than 5-10% of the IPO to the retail public.
This choice would hinge on the belief that the large base of loyal supporters would help stabilize the title after its debut. Record demand is expected from retail investors, as happened at the time of Google’s placement. A certain interest is expected both from family officers who have supported Space X for years and from small investors ideologically attracted to Musk’s companies, not only Space
Precise roles for placement banks
Musk’s plan also includes an unusually selective approach in choosing the banks that will handle the placement. The owner of Space Different roles therefore according to customer segment and geographical area.
