Elon Musk's space exploration company, SpaceX, is offering its insider shares for sale in a tender offer that could raise the company's value to approximately $150 billion. Sources with inside knowledge say SpaceX is initially seeking to raise $750 million through the tender offer by offering shares at more than $80 apiece. The California-based company had a reported value of $137 billion in January, following $750 million in investor funding. SpaceX currently has approximately $5 billion in cash, according to insiders.
SpaceX is the most valuable start-up in the United States, and its dominance in the market for commercial space launches is well-established. While working for private companies to send payloads into space, SpaceX also collaborates with NASA and other government agencies to fulfill its mission. The company also transports astronauts to and from the International Space Station on behalf of NASA, and recently completed the world's first private space tourism mission.
On Friday, SpaceX successfully launched over 50 additional satellites, expanding its constellation to provide broadband internet across the globe. Observers will closely monitor whether Musk chooses to spin off Starlink, as he suggested he would when his company's cash flow becomes more manageable. It remains to be seen whether the size of the tender offer will fluctuate depending on the level of interest from both buyers and insider sellers.