The company’s decision is the latest sign that Elon Musk is intent on holding the largest ever initial offering according to his preferences, upending Wall Street tradition — though sources stressed that the decision is subject to change before the IPO takes place. SpaceX didn’t immediately respond to a request for comment.
SpaceX began meeting with investors on Thursday in its IPO roadshow – where securities issuers and their bankers typically gather investor feedback before determining the final IPO price at a meeting held a day before the shares begin trading.
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Three sources familiar with the roadshow described demand as insatiable. Analysts working on the IPO were fielding as many as 20 calls a day from investors, above the 10 to 15 typically seen on in-demand offerings, one of the sources said.
SpaceX publicly set a $135 price for shares in its initial public offering on Wednesday, upending the longstanding Wall Street price-discovery apparatus and underscoring Elon Musk’s determination to raise record sums his way.
The company’s decision to publish a price a week ahead of its landmark offering has few if any precedents among major U.S. IPOs, and reflects Musk’s standing in the financial world as an adventurer with a golden touch – even as the capital raise will value SpaceX at very lofty multiples.
SpaceX’s amended IPO filing confirms a Reuters report on the $135 price from earlier this week. The company is aiming to raise $75 billion, the most ever for an IPO, in a deal that would value it at $1.75 trillion, immediately placing it among the top 10 most valuable U.S.-listed firms.
SpaceX’s trading debut is expected on Friday, June 12.
