The world's largest IPO is coming? SpaceX selects Goldman Sachs and three other major investment banks as underwriters
According to the Financial Times, citing informed sources, SpaceX executives have met with bankers from Bank of America, Goldman Sachs, JP Morgan, and Morgan Stanley in recent weeks, selecting these four Wall Street investment banks as lead underwriters. It has been reported that other banks may also secure a place in this listing, which has not yet been finalized
Elon Musk's rocket manufacturer SpaceX is preparing for an IPO that could set a global record, selecting four Wall Street investment banks as lead underwriters.
According to sources cited by the Financial Times, SpaceX executives have met with bankers from Bank of America, Goldman Sachs, JP Morgan, and Morgan Stanley in recent weeks, with the company preparing to go public as early as this year.
The report cites sources indicating that other banks may also secure a place in this listing, but they cautiously pointed out that no final decision has been made yet.
Since its establishment over twenty years ago, SpaceX's valuation has continued to rise, solidifying its position as a leading developer of commercial rockets while also offering the Starlink satellite internet service.
Wall Street Journal mentions that SpaceX set the latest internal stock issuance price at $421 per share last December, corresponding to a staggering valuation of $800 billion, potentially setting the record for the largest IPO in history.
The Four Major Banks Lead the Preparation
According to sources, Bank of America, Goldman Sachs, JP Morgan, and Morgan Stanley have taken leading roles in SpaceX's IPO project. Sources added that other investment banks may also secure project positions, but no final decision has been made yet. All four banks declined to comment, and SpaceX did not immediately respond to requests for comment.
Wall Street Journal mentions that SpaceX's IPO is expected to raise significantly more than $30 billion, likely surpassing the $29 billion record set by Saudi Aramco's IPO in 2019, making it the largest IPO in history.
In September last year, SpaceX reached a $17 billion deal with struggling operator EchoStar to acquire wireless spectrum licenses to enhance the Starlink network, allowing Musk to expand the service in the U.S.
This deal further solidified SpaceX's dominant position in the satellite internet sector.
Tech Giants Cluster for IPOs
SpaceX's IPO preparations come as the U.S. market may see multiple large tech companies going public.
Artificial intelligence companies OpenAI and Anthropic are also preparing potential IPO plans. Analysts say that just these three deals could raise more than the total amount of U.S. IPOs for the entire last year.
Other large private companies planning to go public this year include the data analytics company Databricks, valued at $134 billion, and the design platform Canva, valued at $42 billion. The fitness tracking app Strava is also expected to initiate an IPO in the coming months.
Despite the optimistic outlook, market volatility may disrupt these IPO plans.
Trump's tariff policies led to an underwhelming IPO market last year. Trump's announcement of reciprocal tariffs in April weighed on the stock market, delaying multiple large tech company IPOs and disappointing investment bankers who had expected a strong recovery in the IPO market after three years of stagnation However, as the company advances its long-delayed listing plan, coupled with the support provided by the rising stock market, the IPO market has recently regained momentum
