SpaceX Pursues $5 Billion Investment from Saudi Fund in Potential IPO

Elon Musk's SpaceX Seeks Record-Breaking $75 Billion in IPO

SpaceX, the private space exploration company founded by billionaire Elon Musk, is in discussions with Saudi Arabia's Public Investment Fund (PIF) about the possibility of PIF taking an anchor stake of approximately $5 billion in the company's upcoming initial public offering (IPO). According to two sources familiar with the matter, the investment would help to mitigate the dilution of PIF's existing stake of just under 1% in SpaceX.

As part of its preparations for the IPO, SpaceX has been lining up anchor investors, with three other sources confirming the company's efforts. The goal is to raise a record-breaking $75 billion, surpassing the previous mega-IPOs of Saudi Aramco in 2019 and Alibaba in 2014. This unprecedented scale of investment is a significant undertaking, and SpaceX is currently gauging investor interest for the deal.

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The talks between SpaceX and PIF are confidential, and no final decision has been made. Any investment remains subject to change, according to the sources. SpaceX did not respond to a request for comment, while PIF declined to comment on the matter.

Anchor investors, such as institutional buyers, typically commit to a fixed stake ahead of an IPO roadshow, signaling confidence and helping to underpin demand for the offering. While SpaceX is courting big-ticket anchor investors, a significant portion of the allocation is expected to go to wealthy investors served by the underwriting banks.

SpaceX, based in Starbase, Texas, submitted confidential IPO paperwork with the SEC recently and is targeting a market launch later this year.