New Delhi: According to sources familiar with the subject, billionaire Elon Musk’s SpaceX is on track to become the most valuable U.S. company after its valuation jumped to over $125 billion in a secondary market share sale.
The shares, which are currently valued at around $72, have increased in value since last October, when they were sold at $56 apiece after a 10-1 split, valuing SpaceX at $100 billion.
According to one of the individuals, who did not want to be identified, no new shares were issued in the secondary offering, but the company signalled to investors that they might do so later this year.
SpaceX might be worth more than $125 billion after the share sale, surpassing financial behemoth Stripe, which was valued at $115 billion in a secondary sale.
The number of shares available for purchase by the corporation has not been disclosed. Highly valued private corporations frequently issue secondary market shares to provide liquidity to early investors and workers.
Reuters was unable to determine whether Elon Musk, the CEO of SpaceX and the man who struck a $44 billion contract to buy Twitter Inc., was among the sellers. Musk is also the founder and CEO of Tesla Inc.
According to regulatory records, SpaceX received $337.4 million in December and $1.16 billion in equity financing last April in the capital-intensive sector.
In the increasing constellation of commercial rocket enterprises, the company competes with former Amazon.com CEO Jeff Bezos’ space venture Blue Origin and billionaire Richard Branson’s Virgin Galactic.
For the National Aeronautics and Space Administration (NASA), SpaceX has already delivered multiple cargo packages and humans to the International Space Station, including 19 rocket missions this year alone.
