Elon Musk's Space Exploration Technologies Corp. or SpaceX aims to price its initial public offering or IPO of around 556 million shares at $135.00 per share, with a view to raising around $75 billion, making it the largest stock market debut in history.
With the planned IPO, spacecraft maker SpaceX's market valuation is estimated to reach $1.77 trillion, beating that of its sister concern Tesla Inc., the electric vehicle maker founded and led by Musk. The IPO is also expected to make Musk, SpaceX's founder, Chief Executive Officer, Chief Technical Officer and Chairman of the board, the first trillionaire in the world.
In a filing with the U.S. Securities and Exchange Commission, the company announced its plan to offer around 555.556 million shares of its Class A common stock at its IPO with a price of $135.00 per share. The underwriters may also exercise an option to purchase up to an additional 83.33 million shares of Class A common stock.
Texas-based SpaceX will offer shares of Class A common stock, par value $0.001 per share. The shares will be listed on Nasdaq Stock Market LLC and Nasdaq Texas, LLC under the symbol "SPCX." SpaceX shares are expected to trade from June 12.
Following the completion of the offering, there will be Class A common stock and Class B common stock. Each share of Class A common stock will entitle its holder to one vote per share, while each share of Class B common stock will entitle its holder to 10 votes per share.
Musk will hold around 82.4 percent of the voting power of its common stock immediately after the completion of the offering through his ownership of Class A and Class B shares. In which, around 81.1 percent is attributable to his ownership of Class B common stock.
Musk's voting power would be around 82.3 percent if the underwriters exercise their option to purchase additional shares of Class A common stock in full.
As a result, Musk will be able to control the outcome of matters requiring shareholder approval, the firm noted. This includes the election of a majority of board for so long as he holds a majority of the voting power of the Class B common stock, and the remainder of the board, for so long as he holds a majority of the combined voting power of the Class A and Class B common stock.
SpaceX, which also provides Starlink satellite internet services across the world, will be a "controlled company" under the corporate governance rules of Nasdaq following the completion of the offering. The firm intends to rely on exemptions from certain corporate governance requirements.
Joint Book-Running Managers in the offering include Goldman Sachs & Co. LLC, Morgan Stanley, BofA Securities, Citigroup, and J.P. Morgan.
For comments and feedback: editorial@rttnews.com