SpaceX is lining up at least 21 banks to help handle its upcoming initial public offering (IPO), a move that shows just how big and high-profile the listing is expected to be.
The IPO, internally called Project Apex, is already shaping up to be one of the most talked-about stock market debuts in years. The launch is expected around June, and early estimates suggest the company could be valued at about $1.75 trillion, a figure that would instantly place it among the most valuable businesses globally.
The valuation can land the firm as a landmark listing that could set the tone for big tech and space companies looking to go public in the years ahead.
Which banks are involved?
The biggest Wall Street names, such as Morgan Stanley, Goldman Sachs, JPMorgan Chase, Bank of America, and Citigroup, are taking the lead on the deal, acting as the major bookrunners, or those responsible for managing the deal, working with investors, and helping to determine the share price.
In addition to these major players, a further 16 banks are also participating in a smaller capacity. It is interesting to note that half of these banks had never previously been associated with the deal, such is the extent to which the list of participating institutions has grown.
Banks that are part of the planned IPO are expected to have different roles to play for different types of investors and regions, and this is an indication of just how complex and global the IPO is expected to be.
This is because some of the banks will have to deal with high-net-worth individuals, while others will have to deal with retail investors. There are also some that will have to deal with institutional investors, and some will have to deal with specific regions such as Asia, Europe, and North America, to name just a few.
Sources say the plan is still evolving, and more banks could be added to the group if necessary. That kind of adaptability is often seen with massive IPOs. Demand can fluctuate rapidly, or a company might want to boost its presence in specific markets. Adding more banks to the mix can also help distribute risk and offer additional backing if the market gets shaky when the offering goes live.
SpaceX keeps IPO planning undercovers
So far, SpaceX has not publicly commented on reports about its IPO preparations. Several major lenders, including Bank of America, Barclays, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Mizuho Financial Group, Banco Santander and Wells Fargo, have also declined to comment, which is standard practice while negotiations and regulatory filings are still underway.
Large underwriting groups have become the norm for blockbuster IPOs in recent years. As deals become bigger and attract investors from around the world, companies increasingly turn to a large syndicate of banks to help with marketing, investor outreach, and order management.
Having a large syndicate may also indicate a company’s expectations for demand and its desire to be able to handle it effectively.
Recent mega listings show the same pattern, like Chip designer Arm Holdings worked with nearly 30 banks for its 2023 public debut, one of the most closely watched tech IPOs in recent memory.
Earlier, e-commerce giant Alibaba Group assembled a similarly large team of underwriters for its record-breaking 2014 listing.
Taken together, these examples help explain why such a broad banking lineup is forming around this deal. For market watchers, the size of the syndicate is often an early clue that the offering could rank among the largest and most complex public listings of the decade.