The space exploration company SpaceX has taken steps to sell its shares to the public for the first time, which could set the stage for one of the largest initial public offerings (IPOs) in modern history. The news could also put founder Elon Musk on the path towards becoming the world’s first trillionaire. Reports indicate that the company quietly filed for an IPO, which could take place as soon as June or July, with the stock market listing expected to bring in as much as $75 billion.

Angelo Bochanis, a data and index associate at Renaissance Capital, told Reuters that investors could use a sum-of-the-parts analysis, but, similar to Tesla, SpaceX’s valuation could fluctuate wildly based on how much the public believes in Musk’s vision. So far, investors seem to be clamouring for any sort of exposure to SpaceX, as the company’s space and satellite business has attracted attention for years.

Currently, SpaceX is considered the most valuable privately held company in the world, particularly after its February merger with another Musk venture, the artificial intelligence firm xAI. Musk has also made ambitious pronouncements about the company’s future, with goals of putting a base on the moon and even sending humans to Mars, though it is unclear whether some of those more extravagant goals will proceed according to previously announced timelines.

Last year, for example, Musk doubled down on his goal of sending an uncrewed mission to Mars by the end of 2026, though he acknowledged there was a 50-50 chance he would not succeed. Still, his company has notched substantial successes in areas such as satellite communications – the SpaceX-owned Starlink has become the world’s largest satellite communications company.

Musk himself has generated controversy in recent years, particularly due to his close associations with right-wing movements and figures like US President Donald Trump. Nevertheless, experts say a SpaceX public offering is likely to generate significant enthusiasm, despite Musk’s ties. Kat Liu, vice president at the financial firm IPOX, told Reuters that it is understandable investors would be concerned with Musk overseeing multiple significant enterprises, especially given his polarising public profile, but SpaceX appears somewhat differentiated – the business is operationally mature, technologically ahead in several key areas, and profitable, providing a solid fundamental underpinning.

The research firm Pitchbook has estimated that the offering could bring SpaceX’s valuation to nearly $1.5 trillion, nearly twice what it was in December. The estimated $75 billion IPO would easily surpass the oil giant Saudi Aramco’s $25.6 billion in 2019, which holds the record for the largest IPO in history.

Source: www.aljazeera.com