SpaceX to raise $75bn via IPO, sets share price at $135

SpaceX, an American aerospace manufacturer, has set a price of $135 per share for its initial public offering (IPO).

The move diverges from the traditional Wall Street process of determining share prices through investor consultations.

According to Reuters, the company, founded by Elon Musk, announced the price in an amended IPO filing on Wednesday, about a week before the offering is expected to be priced.

The company is seeking to raise $75 billion in what would be the largest IPO in history, valuing the aerospace and satellite communications firm at about $1.75 trillion.

The valuation would immediately place SpaceX among the 10 most valuable publicly listed companies in the United States.

The company is expected to begin an investor roadshow on Thursday, with the IPO scheduled to be priced on June 11.

Trading of its shares on the Nasdaq is expected to commence a day later.

Reuters also reported that the decision to publish a share price ahead of the roadshow has few precedents among major US IPOs and highlights Musk’s influence over investors eager to participate in the offering.

SpaceX has also departed from convention in other aspects of the offering, including plans to allocate a larger share of stock to retail investors and efforts to secure early inclusion in major stock market indices while maintaining strong founder control.

“Nothing about this IPO is normal in any course or sense, but then again this is the largest IPO in history so maybe that is not surprising,” an investor planning to participate in the offering told Reuters.

The publication also reported that some investors had sought a valuation closer to $1.5 trillion, lower than the company’s target of $1.75 trillion.

According to the report, SpaceX is reportedly considering allocating as much as 30 percent of the shares to individual investors.

SpaceX final pricing is scheduled for June 11.(TheCable)