UNITED STATES: Elon Musk’s SpaceX is in discussions to arrange a capital round that would value the rocket launch and satellite company at more than $150 billion, according to people who know the matter.
Current negotiations value SpaceX’s shares at roughly $85 each, up from the $125 billion valuation the business received earlier this year, according to sources.
This suggests strong investor interest, while many late-stage venture capital-backed startups must deal with valuation reductions.
Investors could purchase newly issued shares from SpaceX and employees who opt to sell their shares through a tender offer or private placement. One of the sources predicted that the initial round might raise close to $1 billion.
To allow employees to sell their shares on the secondary market without the company going public, SpaceX, one of the most valuable privately held companies in the world, routinely offers liquidity programs.
Musk has shown his intention to provide identical shares and liquidity programs for Twitter, the social media company he acquired for $44 billion.
SpaceX competes with Jeff Bezos’ Blue Origin, the space corporation created by the founder of Amazon.com, and Richard Branson’s Virgin Galactic (SPCE.N) in the growing field of commercial rocket endeavours.
Investor interest in SpaceX has increased significantly due to the company’s numerous triumphs this year.
SpaceX successfully launched Falcon Heavy, the most powerful operational rocket in the world, for the first time in more than three years.
Meanwhile, the launch of its massive Starship rocket system is planned for early December.
Additionally, investors have been captivated by Starlink, SpaceX’s growing network of thousands of internet satellites, as a huge source of income with commercialised uses like the launch of high-speed internet on commercial airlines last month.