SPACEX and its investors have agreed to purchase as much as US$1.25 billion of insider shares in a transaction valuing Elon Musk’s rocket and satellite maker at about US$350 billion, according to an internal e-mail seen by Bloomberg.
The per-share price of US$185 is up substantially from the US$112 set in a prior valuation less than three months ago, said the memo, which was separately confirmed by sources familiar with the matter. SpaceX alone is offering to purchase as much as US$500 million worth of common stock, it said.
The company, formally known as Space Exploration Technologies, did not immediately respond to a request for comment.
The staggering valuation, which was confirmed by a Bloomberg report from last week, cements SpaceX’s status as the most valuable private startup in the world, with a market capitalisation rivalling some of the largest public companies. It reflects the post-election gains across the billionaire chief executive officer’s business empire.
SpaceX has established itself as one of the industry’s preeminent rocket launch providers, lofting satellites, cargo and people to space for Nasa, the Pentagon and commercial partners, and is building out a large network of Starlink satellites providing Internet service.
Musk’s businesses have seen an enormous boost since the US election, with investors seeking to capitalise on the billionaire’s deepening ties to president-elect Donald Trump. Musk’s own wealth has soared to about US$384 billion, according to the Bloomberg Billionaires Index.
A so-called tender or secondary offering, through which employees and some early shareholders can sell shares, provides investors in closely held companies such as SpaceX a way to generate liquidity. BLOOMBERG
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