Space X kicks off IPO process with confidential filing

Elon Musk’s Space X has confidentially filed to go public, bringing the rocket company a step closer to delivering what is expected to be the largest initial public offering in history.

The Texas-based company submitted its draft IPO paperwork to the US Securities and Exchange Commission this week, according to the Financial Times, citing two people familiar with the matter.

Confidential filings allow companies to advance their listing and receive feedback from the regulator without publicly revealing their financials.

Details of the offer, including the number of shares to be sold and the price range are expected to be disclosed in a later filing.

The filing puts the company on track for a June listing, which would mark Space X as the first of what could be a trio of mega-deals, ahead of rivals Open AI and Anthropic.

Space X acquired Musk’s lossmaking AI start-up in March for $250bn (£189.3bn).

Seeking valuations

Musk’s company is seeking to raise roughly $75bn and eyeing a valuation of around $1.75 trillion, according to people familiar with the matter.

In the US, only Magnificent Seven constituents Amazon, Nvidia, Alphabet and Microsoft have higher market capitalisations, with Space X valued at around $90bn as of 2022.

The IPO would also dwarf the current record holder oil major Saudi Aramco, which raised $29bn in 2019.

Space X is telling prospective IPO investors to expect briefings from company executives this month, with meetings potentially including more detail that would support its valuation target.

The satellite company is also reportedly mulling the idea of allowing some existing shareholders to sell down their stakes in the company on its first day of trading.

This would go against guidelines that typically prevent insiders cashing out of their positions for 180 days after a company’s market debut.

International banks

The company has lined up Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase and Morgan Stanley for senior roles on the IPO.

Space X is also working with international banks, who are looking after taking IPO orders in specific regions, with Citigroup coordinating the roles, people familiar with the matter have said.

High-street stalwart Barclays in in charge of the UK, with Deutsche Bank and UBS Group working on European orders.