Elon Musk’s SpaceX valuation inches closer to a $180 billion net worth as it is set to offer insider shares at $97 each in a tender offer.
Based on reports by sources according to Bloomberg, as the world’s second-most valuable privately held startup, SpaceX has been engaged in discussions regarding a tender offer ranging between $500 million to $750 million.
The share price, originally deliberated at approximately $95 last week, has since ascended, reflecting robust investor interest in securing a stake in the preeminent space transportation company and its rapidly expanding Starlink internet-from-space service.
Details surrounding the terms and the final scale of the tender offer remain subject to potential adjustments.
In August, the company reached an agreement with both new and existing investors to offer up to $750 million in stock from insiders for $81 per share in July, valuing it at approximately $140 billion, according to a document sent by SpaceX Chief Financial Officer Bret Johnsen.
What you should know
Tender offers of this nature are commonly employed by privately held entities to afford employees the opportunity to realize the value of their holdings ahead of an initial public offering (IPO).
Simultaneously, it presents investors with a chance to augment their equity holdings.
Headquartered in Hawthorne, California, SpaceX has emerged as a juggernaut in the commercial space sector, achieving over 90 successful launches of its Falcon 9 and Falcon Heavy rockets in the current year, a record-breaking feat for a U.S. commercial launch enterprise.
Furthering its dominance, SpaceX has extended its reach into its Starlink initiative, a satellite-based internet service boasting over 5,000 satellites in low-Earth orbit, providing broadband connectivity.
SpaceX reported that Starlink surpassed 2 million active users this year.
Projections indicate that SpaceX may achieve revenues of approximately $9 billion this year across its rocket launch and Starlink divisions, with estimates foreseeing an increase to around $15 billion in 2024.
