SpaceX files for potentially record-breaking IPO: media

SpaceX has confidentially filed for an initial public offering (IPO), reported Bloomberg on Wednesday, bringing Elon Musk's space company closer to possibly the biggest IPO in history.

The company submitted its draft IPO registration to the US Securities and Exchange Commission (SEC) on Wednesday, Bloomberg reported, citing people familiar with the matter who asked to remain anonymous. 

The filing, which allows companies to get feedback from the SEC and make changes before the information becomes public, puts SpaceX on schedule for its expected public offering in June.

The mega IPO, reportedly aiming to raise as much as $50 billion, could easily surpass Saudi Aramco's 2019 listing, which raised $29 billion and remains the world's largest IPO on record. SpaceX is lining up 21 banks for its listing, Reuters reported. Morgan Stanley, Goldman Sachs, JPMorgan Chase, Bank of America, and Citigroup will serve as the lead banks managing the deal, an anonymous source told Reuters on Tuesday.

Bloomberg reported in February that the company could seek a valuation of over $1.75 trillion. Originally a space launch provider, the company has expanded into satellite communications and AI after acquiring Musk's own artificial intelligence startup. 

The $1.75 trillion market value would make SpaceX larger than Meta Platforms Inc., but it would still fall behind the top five companies in the S&P 500 Index: NVIDIA, Apple, Alphabet, Microsoft, and Amazon.

SpaceX said it would use its IPO to fund an "insane flight rate" for its Starship rocket, according to a memo obtained by Bloomberg in 2025. 

Starship, a reusable, 40-story-tall super heavy-lift launch vehicle designed for Mars colonization, has been under development for over a decade. In 2016, Musk stated that his company would build a megarocket capable of carrying humans to Mars by 2025. That deadline has now been extended to 2030.

The memo also mentioned plans to fund space-based AI data centers and a lunar base.

The company's Starlink satellite business is likely the main source of revenue backing SpaceX's $1.75 trillion valuation, according to Shay Boloor, chief market strategist at Futurum Equities, interviewed by Reuters.

"Starlink is the only reason this valuation is defensible," Boloor said. "This is going to be the recurring revenue engine." 

Starlink generates 50%-80% of SpaceX's revenue, according to Reuters. The broadband satellite network launched by SpaceX's rockets now has around 10,000 satellites in orbit, providing internet to 10 million active users, the company announced. Additionally, Starlink secured a Pentagon contract in 2023 to develop a military version called Starshield. 

(With inputs from agencies)