Elon Musk’s rocket and satellite company SpaceX has confidentially filed for an initial public offering with the Securities and Exchange Commission, sources told CNBC’s David Faber on Wednesday. The firm could seek a valuation of $1.75 trillion with a public listing around June, Bloomberg reports, citing people familiar with the matter.
A confidential filing means that SpaceX will submit its financials to the SEC before revealing them to the public, which must occur at least 15 days before the IPO roadshow — a series of presentations to attract potential investors.
In general, investors have reason to be enthusiastic about getting in on the proverbial ground floor of a newly public company. From 1980 through 2025, stocks have popped by an average of 19% from their offering price on the first day of trading, according to data from Jay Ritter, director of the IPO initiative at the University of Florida.
And few public offerings are likely to be as buzzy at this one. SpaceX is reportedly looking to raise up to $75 billion, which would make it by far the largest U.S. debut of all time, a title which currently belongs to Alibaba’s $22 billion offering in 2014.
Under certain circumstances, experts say, there is short-term money to be made investing at the very beginning of an IPO. But because of the potential for volatility, longer-term investors should tread carefully, and may want to take a more cautious tack.
What to know before investing in IPOs
