SpaceX Targets $25B IPO, Eyes Trillion Valuation
Synopsis
SpaceX led by Elon Musk intends to go public as soon as next year aiming to secure upwards of $25 billion and achieve a valuation exceeding $1 trillion. The firm began talks with investment banks about the IPO this summer around June or July. Musk mentioned in 2020 that SpaceX aims to list Starlink once its revenue expansion becomes "steady and reliable." The funds raised will be utilised to advance the creation of data centres located in space. SpaceX reportedly could make revenue of about $15 billion in 2025, going up to $22 billion to $24 billion in 2026, mostly contributed by Starlink.
According to sources, Elon Musk's SpaceX is contemplating an initial public offering as soon as next year, aiming to secure over $25 billion and achieve a valuation exceeding $1 trillion. The insider mentioned that SpaceX has started discussions with institutions regarding the public offering, which might take place in June or July. Musk mentioned in 2020 that Starlink would eventually become a traded company.
In 2020, Musk stated that SpaceX planned to make Starlink public within a few years. This will occur once its revenue growth stabilises and becomes more foreseeable. Upon being contacted by Reuters, SpaceX did not provide a response. Saudi Aramco is still the IPO that has attained a valuation of $1 trillion or higher. It debuted on the market in December 2019 with a market capitalisation of $1.7 trillion.
Funds raised from the offering are anticipated to be utilised by SpaceX for creating space-based data centres, which include acquiring the necessary chips to operate them. Musk expressed his enthusiasm for this concept at an event hosted by Baron Capital. The company is expected to generate $15 billion in revenue in 2025, growing to an estimated $22 billion to $24 billion in 2026.
Week reports estimated SpaceX's valuation at $800 billion
Media outlets claimed that the rocket manufacturer was beginning a secondary stock offering, placing its valuation at US$800 billion, setting it in competition with OpenAI for the title of the highest-valued private firm. However, Musk stated on Saturday that these reports were incorrect.
This would rank as one of the IPOs ever. Should SpaceX launch an IPO, it would be accessible to investors; currently, it is solely owned by private investors and staff. The company attracts interest due to its achievements in rockets and satellite technology. The Starlink initiative deploys thousands of satellites to deliver internet connectivity from orbit. It has gained traction in isolated locations lacking standard internet access.
A $25 billion funding round would give SpaceX the amount of capital to utilise. One novel idea proposed is space-based data centres. These would be orbiting data centres, managing and storing data through satellites. This could be beneficial since space is cold, aiding in cooling computer hardware, and the absence of gravity could assist computing processes. However, constructing data centres in space would be highly costly and technically challenging.
A valuation exceeding $1 trillion would place SpaceX among a group of the highest-valued companies globally, such as Apple, Microsoft and some others. Achieving such a valuation as a firm before an IPO is uncommon and reflects SpaceX’s tremendous success.
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At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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