Elon Musk’s SpaceX poised to become the most valuable US start-up at US$125 billion with share sale in secondary market
- SpaceX has indicated to investors that it may offer new shares in a secondary offering later this year, which could value it more than fintech giant Stripe
- It is unknown whether Musk, who has signed a deal to acquire Twitter for US$44 billion, would be involved in the share sale
The shares, which are marketed at about US$72, jumped in valuation from last October, when SpaceX’s shares were sold at US$56 apiece after a 10-1 split and valued the rocket company at US$100 billion.
No new shares have been issued in the secondary offering, but the company indicated to investors that they may do so later this year, said one of the sources, who asked not to be identified.
The share sale could value SpaceX at over US$125 billion, surpassing fintech giant Stripe, which was valued at US$115 billion in a secondary sale.
It could not be learned how many shares have been made available for sale by the company. It is common for highly valued private companies to offer shares in the secondary market to introduce liquidity for early investors and employees.
SpaceX did not immediately respond to Reuters’ request for comment. The New York Post first reported on the private placement on Monday.
In the capital-intensive business, SpaceX has raised US$337.4 million in December and US$1.16 billion in equity financing last April, according to regulatory filings.
The company competes with former Amazon.com chief executive Jeff Bezos’s space venture Blue Origin and billionaire Richard Branson’s Virgin Galactic in the burgeoning constellation of commercial rocket ventures.
SpaceX has already launched numerous cargo payloads and astronauts to the International Space Station for the National Aeronautics and Space Administration (Nasa), including 19 rocket launches this year alone.