Initiating investment bank selection, SpaceX begins preparations for next year's "super IPO," with Google as an important shareholder?

SpaceX has officially launched the investment bank selection process, marking the most substantial step the commercial aerospace giant has taken towards an IPO. If all goes well, this could become one of the largest IPOs in the capital markets in recent years.

On December 14, The Wall Street Journal cited sources saying that SpaceX executives are scheduled to interview investment bankers this week in the industry colloquially known as the "bake-off" phase to hire advisors to assist with its listing. Meanwhile, Chief Financial Officer Bret Johnsen confirmed in an internal message sent to employees last Friday that the company is preparing for a potential public offering next year. He stated in the letter: "If we execute well and the market cooperates, the IPO could raise a significant amount of capital."

Although the specific timeline for the IPO has not been finalized and management has emphasized that there is "high uncertainty" regarding the listing, SpaceX's valuation is sharply rising in secondary market trading. Reports indicate that a previous secondary market stock sale plan has pushed the company's valuation to approximately $800 billion, doubling from a $400 billion valuation this summer.

This valuation surge has not only attracted attention from the public market but will also directly impact the financial statements of its long-term supporters. As an early investor holding SpaceX shares since 2015, Alphabet, Google's parent company, is expected to record substantial paper gains due to SpaceX's new round of valuation surge, and the market is closely watching for relevant data disclosures in its subsequent financial reports.

Launching Investment Bank "Bake-off" Valuation Soars to $800 Billion

After more than twenty years since its establishment, SpaceX has grown into a key contractor for the U.S. government, with businesses covering satellite launches and manned spaceflight, and the growth of its Starlink satellite internet service further supports the company's value.

According to The Wall Street Journal, SpaceX Chief Financial Officer Bret Johnsen explicitly mentioned the possibility of an IPO next year in internal communications. This decision surprised some close to the company, but the timing coincides with the U.S. IPO market's resurgence after several years of dormancy. Bankers are optimistic about the market outlook for 2026, and if SpaceX successfully goes public, it will undoubtedly be a significant deal.

However, Johnsen also cautioned employees about the risks, pointing out that the IPO plan is still constrained by execution and market conditions.

While advancing IPO preparations, SpaceX's valuation in the primary market has seen a significant revaluation. According to The Wall Street Journal earlier this month, SpaceX is conducting a secondary stock sale, with a transaction valuation of approximately $800 billion.

Bloomberg further disclosed details, stating that SpaceX's internal buyout price is set at $421 per share. This price represents a significant jump compared to previous secondary market transactions. This summer, the company's valuation was still at the $400 billion level.

Alphabet May Record Huge Paper Gains

The surge in SpaceX's valuation will directly benefit its major shareholder Alphabet. According to Bloomberg, as SpaceX completes this tender offer with an implied valuation of $800 billion, Alphabet is expected to record a significant paper gain once again.

Alphabet has been an investor in SpaceX since 2015. At that time, the company participated in a $1 billion funding round alongside Fidelity Investments, holding approximately 10% of the shares. Although Alphabet declined to comment on this and did not disclose specific private holdings per policy, past financial reports have shown the positive impact of SpaceX's valuation changes on its performance.

In April of this year, Alphabet disclosed an $8 billion "unrealized gain," although it did not specify the exact company, the market widely believes this stems from the tender offer for SpaceX's valuation of about $350 billion at the end of last year. This gain helped Alphabet's net profit in the first quarter exceed Wall Street expectations.

Such gains are typically classified in financial reports as "unrealized gains on non-marketable equity securities." With the latest round of valuation soaring, investors will closely monitor the potential accounting gain growth that may appear in Alphabet's next financial report