SpaceX plans to raise $75B via IPO this June
What's the story
SpaceX, the aerospace company founded by Elon Musk, is gearing up for an initial public offering (IPO) this June. The company plans to raise a staggering $75 billion through the move, The Information reported. The decision comes after SpaceX's valuation hit $1.25 trillion in February when it merged with Musk's artificial intelligence firm xAI.
Market impact
Upcoming IPO to break Saudi Aramco's record
The upcoming IPO is likely to shatter the record for the largest public offering ever. That title is currently held by Saudi Aramco, which raised $25.6 billion in 2019. Analysts had previously estimated that Musk would aim to raise between $30 billion and $50 billion given the high demand from investors for tech companies.
Business strategy
Going public will require SpaceX to be more transparent
SpaceX dominates the space launch market with its reusable rockets, and is owned by Musk along with several investment funds and tech firms such as Google's parent Alphabet. Analysts have said that going public will require SpaceX and Musk to be more transparent about their revenues. It could also increase the pressure on them to deliver profits.