Wall Street Banks Roll Out Events as SpaceX IPO Frenzy Builds
Wall Street's biggest banks are rolling out special investor events as SpaceX prepares for what could become the largest IPO in history. Elon Musk joined a JPMorgan event by video and told investors the company needs capital for its next phase of growth. Bank of America, JPMorgan and Morgan Stanley are all promoting the offering through client events featuring SpaceX executives. The company is seeking to raise $75 billion at a valuation of approximately $1.75 trillion. However, SpaceX also faced a setback after S&P Global declined to relax its index inclusion requirements.
Key Highlights
- Wall Street banks are throwing special events before the launch of the SpaceX IPO.
- SpaceX is raising $75 billion at a $1.75T valuation
- There are thousands of clients attending the events, targeting both wealth and retail.
- A rapid route into the S&P 500 has been ruled out by S&P Global.
Wall Street Underwrites SpaceX Ahead of Landmark IPO
Major Wall Street firms are ramping up their efforts to draw investors in SpaceX's direction as it readies an IPO poised to be the largest ever. SpaceX executives are attending large investor events put on by banks like Bank of America, JPMorgan Chase and Morgan Stanley.
SpaceX wants to raise $75 billion in its IPO, getting the company valuation at $1.750 trillion. With that price tag, it would become one of the most valuable publicly traded firms in the world instantly.
Elon Musk Joins Investor Event
During Thursday's event, headed by JPMorgan CEO Jamie Dimon, Elon Musk participated virtually. Musk was added to the programme at short notice.
Musk was quoted as saying, "We're embarking on a massive new growth phase and we need good capital for that," when asked why go public now. He also said he was feeling “pretty good" about the company's revenue forecasts and that revenue had become a lot “more predictable” now than it used to be.
JPMorgan hosted an in person event with SpaceX president and chief operating officer Gwynne Shotwell, and chief financial officer Bret Johnsen. 35,000 clients attended that event approximately.
Banks Eye Special Offers For Clients
JPMorgan broadcasted videos of a SpaceX launch on screens around its headquarters and plastered 'Go for Launch' across the lobby. Meanwhile, Bank of America decked out its New York headquarters with SpaceX decorations and organised 'launch-themed' events for over 5,000 wealth management clients nationwide.
Morgan Stanley is also preparing an event tailored to wealth management clients with SpaceX executives and IPO advisers. Other key banks that helped list the firm have been known to display actual SpaceX models in parts of their headquarters ahead of such a stock sale.
SpaceX Faces S&P 500 Setback
But Musk faced a setback for SpaceX on Thursday when S&P Global said it would not alter its rules around accelerated entry into the largest stock indices. Consequently, SpaceX is unlikely to enter the benchmark S&P 500 soon after its listing. The current rules generally require companies that are recently listed to have traded for at least 12 months before being eligible for inclusion.
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