“At present, five banks are slated to handle the [SpaceX initial public] offering—Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley. Law firms Gibson Dunn and Davis Polk are also advising on the transaction,” the NYT reported.
We reached out to SpaceX today and will update this article if it provides any comment.
Banks poised to earn hefty fees
The NYT observes that when a major IPO occurs, “banks find ways to ingratiate themselves with the company going public, as well as its chief executive.” The SpaceX deal could become the largest IPO ever.
“The IPO is expected to raise more than $50 billion at a valuation above $1 trillion, which means the banks could generate fees in excess of $500 million for advising on the deal,” the NYT reported.
Those fees might be even larger, following a Bloomberg report yesterday that SpaceX raised its target valuation to more than $2 trillion. That would mark a substantial increase over the $1.25 trillion valuation reported in connection with the SpaceX/xAI merger two months ago.
Musk’s automaker, Tesla, has a market capitalization above $1 trillion. Musk recently secured a pay package that could award him $1 trillion over the next decade if Tesla reaches an $8.5 trillion market capitalization and meets other conditions.
