Elon Musk’s SpaceX (PC:SPXEX) has reportedly kicked off a competitive process to hire investment banks ahead of a potential IPO. According to the Wall Street Journal, the space exploration company is seeking financial advisors to guide the deal, signaling growing preparations to take one of the world’s most valuable private companies public.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
SpaceX Explores IPO
Familiar sources stated that investment banks are set to present their pitches this week in a competitive selection process, often referred to as a “bake-off.” This would mark a clear step for SpaceX towards its highly anticipated IPO.
Last week, SpaceX informed employees on Friday that it is preparing for a possible public offering next year. In a message to staff, the company’s CFO Bret Johnsen said the company could raise a substantial amount of capital if it performs well and market conditions are favorable. However, Johnsen also cautioned that both the timing and the decision to go public remain uncertain.
SpaceX Eyes Trillion-Dollar Valuation in Potential IPO
The potential IPO comes at a time when the space industry is booming. SpaceX stands out as the clear leader, dominating the launch market with its reusable rockets and operating the world’s largest satellite network through Starlink. Meanwhile, the company’s IPO appeal is also closely tied to Musk, the world’s richest person, who also leads Tesla (TSLA) and AI startup xAI.
SpaceX is reportedly valued at over $1 trillion and could look to raise more than $25 billion in a public offering. According to reports, the listing could take place as early as next June.
Interestingly, a public listing would open the door to a broader pool of investors, including retail buyers, while giving existing shareholders a simpler path to cash out and realize gains.
Which Space Stock Is a Better Buy, According to Analysts?
Space stocks offer big upside for investors, but they also come with meaningful risks. The industry is growing fast, fueled by advances in satellites, reusable rockets, and rising government contracts. However, many space companies are still early-stage, meaning delays, technical challenges, or regulatory changes can quickly impact share prices.
While most players remain private, investors can use TipRanks’ Stocks Comparison tool to analyze and compare listed space stocks. Click the image below to learn more.
