SpaceX kicks off IPO process, eyes record $75 billion offering

SpaceX has officially begun its initial public offering (IPO) process, signalling what could become the biggest public offering ever. The company has confidentially filed with the SEC, according to reports, and is targeting a potential listing as early as June.

The SpaceX IPO will attract large numbers of investors because its satellite internet business has shown rapid growth throughout its development.

The tech giant's move could raise up to $75 billion, with the company reportedly seeking a valuation of as much as $1.8 trillion. This valuation would position the company ahead of major companies such as Tesla. Companies will determine their final valuation and share size before the listing day arrives.

According to the report, SpaceX is planning to implement a dual-class share system which will enable corporate insiders, including CEO Elon Musk, to maintain increased authority. The company plans to distribute more than 20% of its shares to individual investors, which exceeds its typical distribution approach.

The Starlink satellite-based internet service which SpaceX introduced in 2019 serves as the essential component driving SpaceX's initial public offering. Starlink is believed to generate the majority of SpaceX’s profits and continues to expand its operations worldwide, which strengthens the company’s investment prospects.

The market now faces increasing competition from various companies. Amazon is developing its satellite program while it investigates partnership opportunities that will enhance its capabilities for low-Earth orbit connectivity services.

The SpaceX IPO represents a critical achievement for Elon Musk because it fulfils his vision, which began with reusable rockets and leads to space exploration. Musk, the company's founder who established the business in 2002, will continue to hold his major ownership stake after the public offering.