Elon Musk's SpaceX plans to raise up to US$75 billion when it goes public this month, setting the stage for the largest-ever stock market debut and putting Elon Musk on course to becoming the world's first trillionaire.
Elon Musk 's SpaceX plans to raise up to US$75 billion when it goes public this month, setting the stage for the largest-ever stock market debut and putting Elon Musk on course to becoming the world's first trillionaire.
The company will sell 555.6 million shares at US$135 a piece in an initial public offering, which would give SpaceX a market value of US$1.77 trillion. Only six companies in the S&P 500 are currently worth more, with Nvidia tops at US$5.2 trillion. Musk's voting power in the company will come primarily through his ownership of 5.22 billion Class B shares, which give the holder 10 votes for every share held.
According to the filing, Musk would have 82.4 per cent of the voting power in the company. Forbes currently values Musk's net worth at US$826 billion and his stake in SpaceX at US$542 billion. The estimated value of his SpaceX holdings was based on an overall value for the company of US$1.25 trillion. Based on those numbers, a US$1.77 trillion valuation for SpaceX would boost Musk's net worth by US$223 billion, making him a trillionaire.
However, much of Musk's worth is in stock that he has yet to cash in. Even as it makes a bid for a blockbuster market debut, SpaceX is currently losing billions of dollars a year. The filing shows that the company lost $2.6 billion from operations last year on US$18.7 billion in revenue, and the losses kept piling up at the start of this year, too.
SpaceX's amended prospectus updates details about how much control of the company Musk will have. As SpaceX's CEO, chief technical officer and chairman, Musk's voting power will come primarily through his ownership of 5.22 billion Class B shares, which give the holder 10 votes for every share held. According to the filing, Musk would have 82.4 per cent of the voting power in the company.
SpaceX plans to use the net proceeds from the IPO to fund the expansion of infrastructure for its AI and rocket businesses, and to beef up the constellation of satellites that power Starlink Mobile, among other investments. The company plans to list on the Nasdaq under the symbol
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