SpaceX Raises Over $850 Million Amidst IPO Rumors

Leading space company, SpaceX, raises $850 in equity sale as the world awaits an initial public offering

HongKong – June 3, 2021 /MarketersMedia/ —

SpaceX has reportedly raised $850 million through an equity sale as revealed by the space company in a new SEC filing where it stated to have raised another $314 million in that round. This brings the total funds raised in 2021 to $1.16 billion even as the company continues to put investors on the edge for a possible IPO.

It is worth noting that the company could have possibly raised more through equity sale. According to CNBC, the fist outlet to break the news of the $850 million funding in February, the equity sale received $6 billion in offers in less than 72 hours, with the company ending up raising just a fraction of that, at $420 (Elon Musk’s lucky number) per share.
The funding is the third time that the space company is raising over $1 billion in a single round, with a current market valuation of $74 billion, which is twice its worth this time last year and about half the market cap of Boeing, the largest aerospace company in the United States.

SpaceX is reported to be raising funds to finance the manufacturing and deployment of satellites, as the company launches about 200 satellites every month as part of the plans to expand the Starlink constellation in low Earth orbit. SpaceX looks to be on track to achieve global service coverage in 2021.

According to an estimate by Per Musk, SpaceX will need about $10 billion to build a constellation of 12,000 satellites. Consequently, SpaceX will likely have to raise more capital in the near future with investors having high hopes that the next fundraising round will be an IPO, ideally of Starlink as a separate company.

The CEO, Elon Musk, has hinted at the plan severally. “SpaceX needs to pass through a deep chasm of negative cash flow over the next year or so to make Starlink financially viable,” Musk tweeted in February. “Once we can predict cash flow reasonably well, Starlink will IPO”.

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