BlackRock SpaceX IPO Bet Could Reach a Record $10 Billion
Quick Reads
- BlackRock discussed investing between $5 billion and $10 billion in SpaceX’s planned IPO.
- SpaceX targets a Nasdaq listing under the ticker “SPCX” as early as June 12.
- The company aims to raise $75 billion, which would make it the largest IPO in history.
- SpaceX’s targeted valuation stands at $1.75 trillion, surpassing Saudi Aramco’s 2019 record.
- Elon Musk confirmed the IPO process is active, saying the team needs to “get the SpaceX IPO stuff going here pretty soon.”
BlackRock SpaceX IPO talks are drawing major attention across global financial markets. Meanwhile, BlackRock discussed investing up to $10 billion in SpaceX’s expected IPO next month. According to The Information, sources familiar with the discussions revealed the details. Consequently, the investment would represent a major institutional bet on Elon Musk’s space company.
The BlackRock SpaceX IPO investment figure stands out within the broader offering. Specifically, a $10 billion allocation could give BlackRock roughly 13.3% of the offering in one transaction. As a result, that would surpass Saudi Aramco’s 2019 IPO record allocation. Notably, Saudi Aramco raised $25.6 billion during its landmark public offering. In recent years, few investors received such large IPO share allocations.
SpaceX is rapidly advancing its public listing timeline. In fact, the company expects IPO pricing as early as June 11. Additionally, SpaceX selected Nasdaq for the listing under ticker symbol “SPCX.” Furthermore, SpaceX announced a 5-for-1 stock split for shareholders. Consequently, the split would reduce the share price from $526.59 to $105.32.
However, Wall Street observers remain cautious about the planned IPO. For example, CNBC’s Jim Cramer warned underwriters could release too few shares. As a result, strong demand could push SpaceX’s valuation toward $5 trillion. Moreover, Cramer compared the situation to dot-com era scarcity tactics. Therefore, the listing excitement carries significant valuation risks.
For BlackRock, the move represents a strategic attempt to catch up with rivals. Specifically, analysts see the investment as an effort to expand BlackRock’s private-market exposure. To support this strategy, BlackRock would fund the investment through its $536 billion actively managed fund pool.
