SpaceX tells investors it won’t change its $135 IPO Price
Synopsis
SpaceX has told banks involved in its record-breaking IPO that it intends to maintain its $135 per share offering price despite ongoing investor meetings. The company is seeking to raise $75 billion and has reportedly received overwhelming interest from investors during its roadshow. Sources familiar with the process described demand as “insatiable”, with analysts fielding significantly more investor calls than usual for a major listing. The decision reflects Elon Musk’s willingness to challenge traditional Wall Street IPO practices as SpaceX prepares for one of the largest stock market debuts in history.
SpaceX told banks it will continue to hold onto its $135 IPO price.
Key Highlights
- SpaceX has told banks it will maintain its $135 IPO price.
- The offering aims to raise $75 billion for the company.
- Investor interest among analysts is above-average high.
- This is an unusual decision by Elon Musk, that reflects his approach to an IPO.
SpaceX Holds $135 IPO Price in Roadshow
SpaceX has informed banks working on the record-setting IPO that it will stick with the $ 135-per-share price announced earlier this week. The company is seeking to raise US$75 billion in what could become the biggest initial public offering ever.
The move is also another indication Elon Musk intends to go ahead as he sees fit, inverts the standard Wall Street rules for an IPO. SpaceX, however, is not yet indicating a desire to raise or change the current per-share price, although sources said there remains an option for the plan to be altered ahead of the offering's completion.
Investor Demand Described as "Insatiable"
SpaceX kicked off its investor meeting on Thursday, as it embarks on an IPO roadshow. Companies normally hold these meetings to test investor appetite ahead of finalising a share price shortly before trading begins.
But sources have previously said the demand for the SpaceX deal has been robust. Investor interest was described by the people familiar with the roadshow as "insatiable," while analysts working on the IPO reportedly received up to 20 calls a day from investors. That compares with about 10 to 15 calls a day normally recorded for red-hot stock offerings.
The interest shows the strength of investor appetite for SpaceX, as well as faith in Musk's leadership. It also bolsters the company's position as it gears up for what is expected to be one of the year's most scrutinised entrances into a public market.
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