(Bloomberg) — SpaceX is telling prospective IPO investors to expect briefings in April from company executives, according to people familiar with the matter, as advisers scramble to file for potentially the biggest listing of all time.
Billionaire Elon Musk’s space and artificial intelligence company is set to hold so-called testing-the-waters investor meetings in the weeks after the Easter holiday, the people said, asking not to be identified as the information isn’t public. The company is set to file confidentially as soon as this month for an initial public offering that could raise as much as $75 billion, Bloomberg News has reported.
Though SpaceX has been discussing the prospective listing with investors in less formal meetings, the next briefings would potentially include more detail that would support its valuation target, one of the people said. The company could seek a value of more than $1.75 trillion in the IPO, which is targeted for June, people familiar with the matter have said.
Potential investors are eagerly awaiting more detail on how the firm is pitching its valuation, particularly after it acquired Musk’s xAI. His bold vision to put AI data centers in space and a base on the moon would require huge investment and technological breakthroughs, and the outlook for the third-generation version of the Starship rocket is also a key factor in whether the company can win over backers.
SpaceX’s rocket launch program and Starlink satellites generate the majority of revenue, approaching $20 billion in 2026, with xAI likely to generate less than $1 billion, according to Bloomberg Intelligence. The AI startup turned SpaceX subsidiary has roughly $17.5 billion of debt, which is set to be paid back in full, people with knowledge of the discussions have said.
Musk has often put SpaceX at or near the center of his grand plans. The billionaire said this month that his Terafab project, which would eventually manufacture his own chips for robotics, AI and space data centers, will be jointly run by Tesla Inc. and SpaceX.
At a $1.75 trillion market value, SpaceX would be bigger than all but five of the companies in the S&P 500 Index — Nvidia Corp., Apple Inc., Alphabet Inc., Microsoft Corp. and Amazon.com Inc. It would be larger by that metric than Meta Platforms Inc. and Musk’s own Tesla, the two other members of the so-called Magnificent 7 stocks that together account for more than one-third of the index’s market value.
A PitchBook analyst called that valuation justifiable, while noting that it would mean a price-to-sales ratio of about 110 times on a trailing basis. That compares to Palantir Technologies Inc.’s lofty price-to-sales ratio of roughly 79 times.
