Elon Musk’s SpaceX is seeking new funds that would likely value the company at $125 billion, Bloomberg reported. This would make it the highest-valued U.S. startup on record.
Employees are to sell shares through private placement, all the while investors are to buy at the same valuation. Shares are being offered at $70 versus $56 when SpaceX was valued at $100 billion last October.
The Mechanics: Primary sales enable companies to pool investor capital. Secondary share sales provide liquidity to existing investors.
The Toronto-based Stack Capital Group Inc (TSE: STCK), which gives everyday investors exposure to private companies including Varo Bank, Bolt, Prove, Hopper, SpaceX, among others, looks for these same opportunities when it invests for its shareholders.
“Because we have capital, we can opportunistically buy those underlying shares from them,” CEO Jeff Parks told Benzinga, allowing them to capitalize on "trading inefficiencies" that arise.
Also Read: Does Elon Musk Believe In Aliens? Here's What He Said And How It Would Impact SpaceX
Why It Matters: SpaceX is at the forefront of space transportation. Its reusable rockets with ride-sharing capabilities pave the way for margin expansion.
“Its Starlink satellite communications business also continues to expand globally, with consumer adoption expected to ramp significantly,” Parks explained.
“Overall, investor demand for this world-class company and, specifically, the ability to participate in its future growth, will very likely grow in the coming years.”
