SpaceX increases its IPO valuation to $2 trillion, with the Starlink business as its biggest pillar

SpaceX, Elon Musk’s company, has reportedly secretly filed for an IPO and raised its target valuation to more than $2 trillion, with hopes of becoming the largest IPO deal in history.

SpaceX IPO valuation increased again, with a target of $2 trillion

Bloomberg reported Thursday that SpaceX is testing the waters with potential investors, raising its target IPO valuation from the previous $1.75 trillion to $2 trillion. The company expects to list as early as June this year, with fundraising of up to $75 billion. Once it goes public, it will surpass the record set by Saudi Aramco’s 2019 IPO as the largest IPO in history.

It’s worth noting that the confidential filing (confidential filing) mechanism allows companies to submit documents to regulators without disclosing them publicly, helping them avoid external scrutiny and proceed with the listing process once they are ready.

(What do private investors in SpaceX and OpenAI need to watch? Breaking down the risks of pre-IPO private placements)

Starlink becomes the biggest valuation pillar! Analysts: Without it, the numbers don’t hold up

In response, Futurum Equities’ chief market strategist Shay Boloor said plainly that even such an expensive price still needs strong fundamentals to back it up: “Starlink satellite network business is the only reason that this valuation is defensible, and it will also become the core engine for SpaceX to keep generating profits.”

Starlink has already accumulated more than 9 million subscribers and has deep ties with defense contracts and its own data network business. By comparison, the commercial viability of forward-looking initiatives such as the Starship (Starship) program and space artificial intelligence has not yet been proven.

How to calibrate the weighting of the two in the valuation will become the key contest between investors and underwriters.

A packed schedule of briefings is coming up, and the Saudi sovereign wealth fund is in talks for a $5 billion investment

Reuters also revealed that the company will hold an in-person analyst briefing on April 21, and will open the Macrohard data center of its artificial intelligence subsidiary xAI in Tennessee for outside visitors to tour; on May 4, it will hold an online financial model briefing and engage in discussions with research departments at major banks.

At the same time, Saudi Arabia’s sovereign wealth fund (PIF) is also in talks with SpaceX, considering acquiring the status of a cornerstone investor in this IPO for $5 billion, signaling strong international capital interest in this once-in-a-century deal.

Looking across Elon Musk’s business empire, whether he can fully balance everything remains a concern

SpaceX’s IPO plans have once again drawn attention to Elon Musk’s vast business portfolio, which the market calls “Muskonomy.” From electric vehicle maker Tesla, brain-computer interface company Neuralink, underground tunneling company The Boring Company, and the AI startup xAI, which recently merged with the social platform X. SpaceX itself also completed a merger with xAI, at which time xAI was valued at $250 billion.

Minmo Gahng, an assistant professor of finance at Cornell University, pointed out that after SpaceX goes public, it will very likely adopt a dual-class share structure, allowing Musk to maintain control of the company even while bringing public-market capital into the business. However, for Musk, who simultaneously holds stakes in multiple enterprises valued at over $100 billion, whether he can balance it all remains a concern for some investors.

(xAI, Tesla, SpaceX fully integrated! One article to understand how Musk connects the entire AI supply chain)

This article: SpaceX increases its IPO valuation to $2 trillion; Starlink business becomes the biggest pillar. First appeared on Chain News ABMedia.