Elon Musk’s rocket company SpaceX has been in conversations with Saudi Arabia’s Public Investment Fund regarding a potential $5 billion investment as part of the company’s upcoming stock market debut, according to two individuals with knowledge of the discussions.
The proposed investment would help protect the Saudi fund’s current ownership position of slightly less than 1% in the Texas-based space company, sources revealed.
The aerospace manufacturer has been securing major investors well in advance of its public offering, according to three additional sources. SpaceX hopes to generate an unprecedented $75 billion through the IPO, potentially surpassing previous massive public offerings like Saudi Aramco’s 2019 debut and Alibaba’s 2014 launch.
The space exploration company is working to assess market appetite for such a large-scale transaction, sources indicated, speaking on condition of anonymity due to the private nature of the negotiations. Officials emphasized that no definitive agreements have been reached and any potential deal could still be modified.
Neither SpaceX nor the Saudi Public Investment Fund provided responses when contacted for comment.
Major institutional investors known as anchor investors typically pledge to purchase predetermined amounts of stock before public marketing begins, demonstrating market confidence and supporting overall demand for the shares. While SpaceX pursues these large-scale institutional backers, a substantial portion of the stock allocation is anticipated to be directed toward high-net-worth clients of the investment banks managing the offering.
The Starbase, Texas-headquartered company has recently filed confidential documentation with the Securities and Exchange Commission and is planning to go public sometime this year.
