SpaceX is raising new funds at $127B valuation

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CNBC has learned that SpaceX is in the process of obtaining a significant amount of new investment, which would bring the private company’s worth to over $127 billion. According to an email sent out to the whole firm on Friday and seen by CNBC, the space venture is planning to raise up to 1.72 billion dollars in additional cash at a price of $70 per share. Notably, in February, SpaceX divided its stock price 10-for-1, which resulted in a reduction of the common stock to $56 per share. The new value represents a 25 percent gain from the previous one.

Additionally, SpaceX is undertaking a secondary sale of up to $750 million worth of common shares, which is being offered to business executives and current shareholders. Given that SpaceX is still a privately held corporation more than 20 years after it was established, the firm routinely holds these secondary offerings as a means for long-time investors to liquidate their holdings in the company.

The specifics of the financial injection were not disclosed in a prior article. The news that SpaceX was attempting to bring in more cash was initially reported by the New York Post, which also said, citing anonymous sources, that the capital increase had experienced “tepid demand” thus far.

In the past few years, SpaceX has been successful in raising billions of dollars to fund work on two projects that require a significant amount of funding: the next generation rocket Starship and its global satellite internet network Starlink. As a result, the valuation of the company has skyrocketed.

The investment round for the firm takes place at a time when founder and CEO Elon Musk is facing claims of sexual harassment, which are apparently coming from a former SpaceX aircraft flight attendant. The assertions that have been made against the billionaire have been refuted by him as “wild accusations.” According to reports, the flight attendant did not sue SpaceX and instead signed a severance arrangement in 2018 for the amount of $250,000.

Source: CNBC

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