Talk of SpaceX going public is sending the stocks of its partners and investors soaring. After multiple outlets reported earlier this month that SpaceX could pursue an IPO as soon as next year, The Wall Street Journal reported yesterday (Dec. 14) that the Elon Musk–led rocket and satellite company will begin hearing pitches from investment banks this week, marking a concrete step toward a long-anticipated public listing.
The scale of a SpaceX IPO would be historic. Bloomberg reports the company is seeking to raise more than $30 billion at a valuation of roughly $1.5 trillion. That would nearly double estimates from earlier reports and quadruple SpaceX’s most recent valuation from a secondary share sale over the summer.
For years, Musk had teased a potential IPO of SpaceX’s Starlink division. Now, the company is considering a full public listing, signaling that its launch business is generating steady revenue capable of withstanding the scrutiny of public markets.
IPO speculation first surfaced on Dec. 5. While SpaceX CFO Bret Johnson has told employees the listing remains “highly uncertain,” the market has already reacted. Shares of several publicly traded SpaceX partners and investors have surged, including EchoStar, a communications networks firm, and STMicroelectronics, which supplies components for SpaceX’s Starlink terminals. Other space-focused companies, such as Rocket Lab, also rose in sympathy.
Here are four companies to watch as SpaceX inches closer to what could be one of the largest IPOs in history:
EchoStar Corporation (SATS)
EchoStar operates satellite communication networks, provides wireless and broadband services, and owns brands including Boost Mobile and Hughes Network Systems. Earlier this year, SpaceX agreed to buy wireless spectrum licenses from EchoStar for about $17 billion to support Starlink’s expansion. The deal was funded with a 50-50 mix of cash and SpaceX equity, leaving EchoStar as one of the company’s largest outside shareholders—and positioning it as a major beneficiary of any IPO.
STMicroelectronics (STM)
STMicroelectronics is one of Europe’s largest semiconductor manufacturers and a key supplier to SpaceX. The company provides radio-frequency chips used in Starlink satellites and user terminals, enabling high-speed connectivity across the constellation. STMicroelectronics has shipped roughly five billion chips to SpaceX over the past decade and expects to double that total by 2027, Reuters reported.
Alphabet (GOOG)
Alphabet, Google’s parent company, invested about $900 million in SpaceX in 2015, acquiring an estimated 6 percent to 7 percent stake when the company was valued at $12 billion. That investment, made alongside Fidelity, would see a massive paper gain if SpaceX goes public at the target valuation.
Bank of America (BAC)
Bank of America joined SpaceX’s cap table in November 2018, investing approximately $250 million during a financing round that valued the company at $30 billion. While the stake represents a small portion of the bank’s overall portfolio, it could still deliver an outsized return in the event of a blockbuster IPO.
Other notable shareholders
Musk remains the largest shareholder of SpaceX, owning roughly 40 percent of the company. Other major investors include Peter Thiel’s Founders Fund, Fidelity, Baillie Gifford and Valor Equity Partners.
Several public funds also hold exposure to SpaceX, offering investors indirect access to the company ahead of a listing. These include the ERShares Crossover ETF, the ARK Venture Fund (managed by Cathie Wood’s ARK Invest) and the Baron Partners Fund.
