SpaceX is bargaining for one of the lowest IPO fee structures in the history of Wall Street public offers, news agency Bloomberg reported on Tuesday.
Elon Musk's aerospace and space transportation venture is negotiating with its leading bankers Goldman Sachs Group Inc., Morgan Stanley, Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co and others for a 0.75% Fee.
However, the banks are still likely to rake in $500 million for the issue, whose valuation was recently slashed to $1.8 trillion, from a whopping $2 million.
SpaceX is seeking to raise as much as $75 billion, as per reports, though IPO details such as size and valuation are typically modified ahead of pricing based stakeholder feedback.
The company believes its future growth will come from advanced technologies such as Mars missions and AI-powered data centers in space. The IPO, expected to trade under the symbol SPCX, could become the biggest stock market launch in Wall Street history this month.
SpaceX's pitch to investors in its IPO filing May 20 shows the company's evolution, from focusing on making reusable rockets and a profitable business providing satellite internet, to an AI services and infrastructure giant dreaming of orbital data centers and conquering a total addressable market of $28.5 trillion.
The filing offers a long-anticipated look at the financial state of SpaceX. Last year, the company earned $18.6 billion in revenue while recording a net loss of $4.9 billion.
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In the first three months of this year, SpaceX made $4.7 billion in sales but still posted a $4.3 billion loss. Its balance sheet shows $102 billion in assets, including rockets and equipment, along with debts of $60.5 billion.
The SpaceX issue may spell a historic feat for founder Musk, who could become the world's first trillionaire once the company goes public in the United States.
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