- SpaceX aims to raise at least $75 billion in its upcoming IPO, Reuters reported
- The company targets a valuation of about $1.75 trillion including a greenshoe option
- Preliminary investor meetings helped shape the valuation during the testing the waters phase
Elon Musk-led SpaceX is aiming to raise at least $75 billion through its upcoming initial public offering (IPO), targeting a valuation of approximately $1.75 trillion, including a greenshoe option, Reuters reported on Tuesday, citing people familiar with the matter.
The proposed valuation emerged after preliminary meetings with potential investors as part of the company's testing the waters process, according to the report.
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Following preliminary investor meetings, commonly known as the "testing the waters" phase, the company has indicated that it is targeting a valuation of approximately $1.75 trillion, including a greenshoe option, the sources told Reuters, speaking on condition of anonymity because the discussions are confidential.
A greenshoe option allows underwriters to sell additional shares if investor demand exceeds expectations.
Reuters had previously reported that SpaceX was considering a preliminary valuation of around $1.75 trillion for the offering.
The company's IPO roadshow is expected to begin on Thursday, Reuters reported earlier. However, the sources cautioned that both the fundraising target and valuation could change as discussions with investors progress.
ALSO READ: SpaceX Said To Cut IPO Value Goal To At Least $1.8 Trillion
The offering is expected to provide public market investors with a rare opportunity to invest in Musk's vision spanning space exploration, satellite communications and artificial intelligence through SpaceX, which has emerged as the flagship asset within the billionaire entrepreneur's business empire.
According to the sources, the IPO is likely to be structured as an all-primary offering, meaning all proceeds from the share sale would go directly to the company rather than existing shareholders.
SpaceX did not immediately respond to Reuters' request for comment.
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