Elon MuskIt is EspaceX plans to set a fixed price of $135 per share before officially marketing its IPOa person familiar with the matter confirmed to CNBC on Wednesday.
Typically, at this stage of the process, new issuers offer a price range that allows the company and its advisors to assess demand sensitivity at different levels. In this case, SpaceX took a more unique approach after a series of test meetings before the roadshow launch.
The company plans to sell 555.6 million shares, implying an offering amount of $75 billion, according to the person, who asked not to be named because the details are confidential.
At a price of $135 per share, SpaceX would be valued at $1.75 trillion, which assumes the EchoStar spectrum and Cursor closing of transactions. Reuters earlier reported pricing details.
The valuation would make SpaceX the seventh largest company in the United States and place it above Teslawhose market capitalization is approximately $1.6 trillion.
Musk’s company plans to debut on Nasdaq on June 12.
Read more CNBC tech newsSpaceX, which will go public under the symbol SPCX, is expected to be the largest IPO evermore than triple the size of Alibabawhich is the largest IPO in the United States to date.
The highly anticipated debut also comes as AI companies Anthropic and OpenAI race to go public.
Anthropic beat out its main rival on Monday by confidentially filing its IPO prospectus with the Securities and Exchange Commission. OpenAI is preparing to file its confidential IPO prospectus in the coming weeks, CNBC previously reported.
SpaceX filed its prospectus with the SEC late last month, revealing billions in losses and Musk’s massive involvement. He submitted a modified deposit On Monday, SpaceX planned to reserve up to 5% of shares in its IPO for purchase by “certain employees and individuals” under a direct stock program.
As SpaceX heads to public market, talks build this Musk’s ultimate goal is to combine the company with Tesla, CNBC previously reported.
Musk has discussed with colleagues the possibility of combining the companies, and a current Tesla employee told CNBC that the topic was openly discussed internally. Tesla and SpaceX have also spent years pooling resources and sharing personnel.
— CNBC’s Lora Kolodny contributed reporting.
