SpaceX, Elon Musk’s rocket and satellite company, is planning to target a $1.75 trillion valuation in its blockbuster initial public offering, which will consist entirely of new shares, according to Reuters.
The IPO is expected to be structured as an all-primary offering, meaning all proceeds would go to the company and existing SpaceX shareholders will not be able to sell any of their shares in the IPO, the sources said.
Shareholders would likely have to wait until at least after the company reports its first quarterly earnings, under a staggered lockup.
After some early meetings with investors, or a “testing the waters” process, the company has indicated it plans to raise at least $75 billion in its base offering, the sources said.
The greenshoe option, set at 15 percent, would allow underwriters to sell additional shares if investor demand exceeds expectations.
The roadshow for the IPO is set to begin on Thursday.
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