“At present, five banks are expected to work on [SpaceX initial public] Offered by: Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley. Law firm Gibson Dunn & Davis Polk is also advising on the deal,” the NYT wrote.
We contacted SpaceX today and will update this article if we hear back.
Banks will get huge fees!
The NYT says that when a big IPO comes around, “banks look for ways to associate themselves with the company going public as well as its CEO.” SpaceX’s offering could prove to be the biggest IPO ever.
The NYT wrote, “The IPO is expected to raise more than $50 billion at a valuation of more than $1 trillion, which means banks could generate more than $500 million in fees for advising on the deal.”
That fee could be even bigger, based on Bloomberg’s report yesterday that SpaceX has boosted its target valuation to more than $2 trillion. This would be a large increase from the $1.25 trillion valuation reported in connection with the SpaceX/XAI merger two months ago.
Musk’s car company Tesla has a market capitalization of more than $1 trillion. Musk recently received a pay package that will give him $1 trillion over the next decade if Tesla reaches $8.5 trillion market capitalization and meets other goals.
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