Will SpaceX, Aiming for the Biggest IPO Ever, Soar After June 12? History Offers an Answer That's Remarkably Clear.
Written by Adria Cimino for The Motley Fool -> SpaceX’s IPO, expected to unfold on June 12, could top $1.7 trillion. The Elon Musk-led company has big ambitions, but to reach these exciting goals, it must invest heavily. One of the biggest stock market events ever is just days
SpaceX’s IPO, expected to unfold on June 12, could top $1.7 trillion.
The Elon Musk-led company has big ambitions, but to reach these exciting goals, it must invest heavily.
One of the biggest stock market events ever is just days away. SpaceX's historic initial public offering, likely to be the largest ever, is expected to happen on June 12. The company set a price of $135 per share and aims to sell 555.6 million shares -- this represents $75 billion and puts the company on track for a valuation of $1.77 trillion.
The SpaceX operation has stirred up excitement in the investment community, due to the sheer size of the IPO, but also the prospects of the company. SpaceX operates in the areas of rocket launches, satellite-based internet service, and artificial intelligence (AI) -- and these markets each could generate tremendous growth.
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Now, with all of this in mind, many investors are wondering: Will SpaceX stock soar? History offers an answer that's remarkably clear.
Before we look back in time, though, let's consider the SpaceX story today. Founded by Elon Musk in 2002, SpaceX has gained tremendous visibility thanks to its strength in rocket launches. In 2008, it became the first private company to successfully send a liquid fuel rocket into orbit.
Last year, the company completed more orbital launches than any other, with a total of 165, according to Bryce Tech data. And over time, SpaceX has completed about 650 launches. Importantly, 85% of missions have used at least one reusable booster, a point that allows for great cost savings over time. The Falcon 9, back in 2010, already reduced launch costs by 85% to $2,700 per kilogram, according to NASA. Moving forward, SpaceX expects its fully reusable rocket, Starship, to increase launch numbers and further reduce costs.
