SpaceX, led by Elon Musk, is reportedly in talks to sell existing shares in a deal worth over $200 billion, according to sources familiar with the matter.
SpaceX Plans to Sell Shares
According Bloomberg, the new valuation is expected to surpass the $180 billion from the previous tender offer. The shares are anticipated to be sold within a price range of $108 to $110.
Tender offers provide insiders or employees with the opportunity to sell their shares without the need for the company to go through the process of filing for an initial public offering.
The company has the opportunity to bolster its financials before considering a potential move into the public markets.
According to anonymous sources, SpaceX is currently in talks regarding a potential tender offer that could begin in June.
The terms are still being worked out and the size of the tender offer may be adjusted based on the level of interest from both those selling and buying shares.
SpaceX is now comparable to some of the world's largest publicly traded companies in terms of market capitalization.
Investors Attracted to SpaceX Due to Elon Musk's Role
According to Wall Street Journal, investor demand has played a significant role in the continuous increase in SpaceX's valuation over the last decade.
This has allowed executives and other staff members to sell their company stock at increasingly higher prices. This benefit is similar to the programs used by publicly traded companies to attract talented individuals.
In addition, SpaceX's long-term investors have been able to increase the value of their stakes, thus improving the performance of their portfolios.
SpaceX has secured an impressive $9 billion in primary funding over the years, with notable investors like Fidelity and Alphabet's Google participating in the company's traditional funding rounds.
Many other investors now have the chance to acquire shares from former and current SpaceX employees. These employees are given the opportunity to sell their shares during liquidity events organized by the company.
Securing access can be quite challenging. According to insiders, opportunities often arise through informal channels such as phone calls or exclusive online platforms that have limited circulation.
Investors and documents viewed by the Journal indicate that Musk is seen as both an attraction and a potential concern for investors at SpaceX.
SpaceX's recent investment offering highlighted the importance of considering Musk's role in the company.
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