Elon Musk is poised to become the world’s first trillionaire as his commercial space company SpaceX goes public today (June 12).
SpaceX is going public at $135 U.S. a share. The stock will begin trading on the Nasdaq (NDAQ) exchange under the ticker symbol “SPCX.”
At a valuation of $1.77 trillion U.S., SpaceX will be the largest initial public offering (IPO) in history and is likely to make Musk the first person with a net worth of more than $1 trillion U.S.
Musk’s net worth heading into the SpaceX IPO is estimated at about $726 billion U.S., according to the Bloomberg Billionaire Index, making him the world’s wealthiest person.
Under the share structure, Musk controls 82% of the voting stock in SpaceX, meaning his net worth is likely to soar past the $1 trillion U.S. mark once the IPO is completed.
SpaceX, which is involved in commercial space rockets, satellite launches, artificial intelligence (A.I.) and social media, is expected to raise $75 billion U.S. from its IPO.
Beyond Musk, the IPO is expected to mint thousands of new millionaires and a few billionaires among the company’s early investors and 22,000 employees that own stock.
Analysts will be watching the SpaceX IPO to see if the stock soars or crumbles when it begins trading on the Nasdaq.
Heading into the IPO, many analysts have argued that SpaceX is significantly overvalued given that it is an unprofitable company with annual revenues of $18.7 billion U.S.
Morningstar (MORN) recently put out a report saying that the actual valuation of SpaceX is $780 billion U.S. or $63 U.S. per share.
The Morningstar estimate is about 55% lower than the company's $1.77 trillion U.S. IPO valuation.
Tech Insider
