“So far, five banks are expected to work on the (SpaceX IPO) offering – Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley. Law firms Gibson Dunn and Davis Polk are also advising on the deal,” the NYT wrote.
We reached out to SpaceX today and will update this article if they have any comment.
Banks to get big commissions
The NYT notes that when there’s a big IPO, “banks find ways to entice the company to go public, as well as its CEO.” The SpaceX offering could be the biggest IPO of all time.
“The IPO is expected to raise more than $50 billion at a valuation of more than $1 trillion, meaning banks could earn more than $500 million in fees for advising on the deal,” the NYT reported.
These fees may be larger based on a Bloomberg report yesterday, SpaceX raised its target valuation to more than $2 trillion. That would be a huge increase over it Its price is 1.25 trillion dollars the SpaceX/xAI merger was reported two months ago.
Musk’s car company Tesla has a market value of more than $1 trillion. Recently Musk received a payment package If Tesla reaches $8.5 trillion in market capitalization and other goals, that will give it $1 trillion over the next decade.
