Hello everyone,
SpaceX has had lots of publicity in the past few years given all of their spectacular launches. Some good, and some not so good, but none the less, very ambitious. Rocket ships are only part of the story. They also have something called Starlink, which supports ambitious satellite expansion for worldwide growth in communications and other internet traffic etc. Merged in with these businesses is AI expansion company, xAI, which recently merged with X (formerly twitter). So there’s a lot going on here, and it’s being driven by businessman Elon Musk.
So what is an IPO, and why go public? Well, start by understanding that up until now these businesses have been privately held. There are shareholders, but they really have no way to sell and cash out. That’s one thing the IPO accomplishes. It allows early investors to get at their money. They become liquid to some extent. That’s a big deal.
The second thing it does is allows the company to access new capital from new investors. So some people are selling to take some profit and get access to their money, while others are now just buying in to invest in the company for the future. The public markets are massive, so SpaceX can now easily raise more money for their future aggressive expansion goals.
Last I read, they are expecting that the value of the firm could be around $1.7 Trillion. To put that in perspective, Amazon is worth about $2.3T. Also, SpaceX plans to raise $75B in new capital. By most measures it could be the largest IPO ever.
Let me be clear, I am not here to promote the stock. This is more informational than anything. But, if you ever wanted to buy the stock, you may be able to do that as soon as this coming Friday, June 12th. That’s when it goes public, and it will begin trading under symbol SPCX on that day. Not sure when investors will actually be able to get shares, shortly after I suppose, we will have to wait and see. One thing I expect for sure, is lots and lots of initial volatility!!
If this is something you would like to learn more about, drop me a note back or give us a call at 952-758-8060. Ernie would be a good one to discuss this with.
Best regards,
Mike