Elon Musk’s rocket company, SpaceX, is moving closer to its IPO and is reportedly making its shares more accessible with a 5-for-1 stock split ahead of its public debut. According to Bloomberg, SpaceX told investors that the split would lower the fair market value per share to about $105.32 from $526.59. The split is expected to be processed this week and officially completed by May 22, which could make the stock look more affordable ahead of what may become one of the largest IPOs ever.
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The stock split comes as SpaceX’s IPO timeline appears to be accelerating. Indeed, Reuters reported that the firm could price its offering as early as June 11, with trading potentially starting on June 12 on the Nasdaq (NDAQ). The company is also reportedly looking to make its IPO prospectus, or S-1 filing, public as soon as this Wednesday, with investor roadshows set to begin on June 4.
That roadshow is the stage where SpaceX and its underwriters pitch the deal to large investors and brokerages before setting the final IPO price. The company is reportedly looking to raise as much as $75 billion in the offering, with a valuation of around $1.75 trillion. That would easily put SpaceX above many of the world’s largest public companies, including Elon Musk’s Tesla (TSLA), which has a market cap of about $1.4 trillion.
What Is the Prediction for TSLA Stock?
When it comes to Elon Musk’s companies, most of them are privately held. However, retail investors can invest in his most popular company, Tesla. Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 12 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $403.86 per share implies 3.3% downside risk.
