The biggest IPO in history, Elon Musk is about to try something new

Elon Musk is preparing an unforgettable stock-market debut for SpaceX—and this isn’t just because it’s expected to be the largest IPO in history.

The 54-year-old billionaire is writing his own script for a major IPO that’s scheduled for mid-June, before his birthday. According to people familiar with the matter, while most executives are expected to travel in person to pitch investors around the country, Musk still wants investors to show up at SpaceX, tour production facilities, and even have a chance to watch a rocket launch.

The IPO is expected to raise between $40 billion and $80 billion. According to people familiar with the matter, Musk and his team are betting that fund managers and analysts will want to make large subscriptions.

According to people familiar with the matter, the rocket and satellite company plans to secretly file its initial public offering (IPO) application with regulators in the coming days. Typically, the public filing happens within a few months after the first submission, depending on how many questions regulators raise.

Letting investors tour the company is just one of the options SpaceX is considering, consistent with Musk’s track record of breaking norms in corporate circles. People familiar with the matter also said other options being considered include: imposing a special lock-up period that restricts early investors from selling shares; prioritizing investors in his other companies; and allocating up to 30% of the shares to retail investors.

According to people familiar with the matter, SpaceX is considering holding events at locations such as its sprawling base near Los Angeles International Airport and rocket-launch sites in the Cape Canaveral area of Florida. People familiar with the matter also said SpaceX executives may visit some investors.

According to people familiar with the matter, these ideas come from Musk and team members, including bankers such as Michael Glaim(s) of Morgan Stanley. It is not yet clear which options will ultimately be implemented.

Musk is known for his unconventional style. He has been reported to have slept in his company’s office and has carried out “fired in anger” moves, and even backed out of due diligence before signing the deal to acquire Twitter. He often posts company announcements on the social media platform now called X, including one about potentially taking Tesla private, which sparked disputes with regulators.

**A nod to fans**

In Musk’s world, loyalty is rewarded. According to people familiar with the matter, this IPO from SpaceX will be no exception.

One of the options being considered is giving preferential treatment to investors who have invested in Musk’s other companies. These investors include Tesla shareholders and investors who backed the billionaire’s 2022 acquisition of Twitter.

Musk has previously hinted at this idea. At Tesla’s shareholder meeting in November last year, he said he wanted to find a way for Tesla shareholders to be able to participate in or invest in SpaceX. The move is intended as a tribute to the retail investors—often Musk fans—who helped push Tesla’s stock price higher.

When Tesla shareholders voted on Musk’s compensation package worth as much as $1 billion, the biggest opponents were institutional investors. But Musk said retail investors gave him their support.

In a post in June 2024, he wrote: “So far, about 90% of the retail shareholders who have voted have voted in favor.”

Like Tesla, SpaceX also has a large fan base, which helps fuel the company’s growth. In 2022, SpaceX urged users of its satellite internet business Starlink to get involved in the company’s regulatory fight with the U.S. Federal Communications Commission (FCC), submitting comments to the FCC.

According to people familiar with the matter, Musk previously said that in SpaceX’s IPO, he wants to allocate one-third or even more of the shares to individual investors. In a typical IPO, individual investors usually can receive only about 10% of the shares.

**A record-setting offering**

The sheer size of this offering from SpaceX has put significant pressure on the bankers involved in the deal.

The company is still discussing the size of the financing and the valuation for the offering, and it has decided to wait until before formal roadshow begins to make a final decision.

If SpaceX’s funding amount reaches $40 billion to $80 billion, it would exceed the nearly $30 billion raised by Saudi Aramco in its 2019 IPO.

SpaceX is considering asking some of its early major shareholders to agree to extend the “lock-up period,” beyond the traditional six months. Lock-up agreements prevent early investors and employees from selling the shares they hold for a period of time after the company goes public. The company and its bankers are worried that early selling by these shareholders could create pressure on the stock price.

Bankers and SpaceX executives are considering eliminating other shareholders’ traditional lock-up periods, which would allow them to sell their shares immediately. Other companies have been breaking with traditional lock-up periods as well.

SpaceX wants to get into major stock indexes such as the Nasdaq 100 as early as possible. This unusual move would bring a large number of new buyers to its shares.

大量资讯、精准解读，尽在新浪财经APP

责任编辑：于健 SF069