If SpaceX were to go public next week, it would command a valuation of around $175 billion, placing it in the league of tech giants like Intel Corporation and IBM. This valuation is based on insider shares traded on the secondary market, painting a picture of SpaceX’s potential market cap.
Partially owned by Elon Musk, SpaceX has kept investors on their toes with rumors of an IPO, offering a glimpse of its satellite division, Starlink. However, for private investors eyeing SpaceX at present, avenues exist through publicly traded private equity (PE) companies that hold shares.
One notable PE firm is Stack Capital, a Toronto-listed entity led by CEO Jeff Parks. Parks envisions democratizing access to growth opportunities in late-stage businesses, offering investors exposure to companies like SpaceX before they hit the IPO stage.
Parks highlighted, “There’s always ample private capital available for blue-chip firms like SpaceX and Stripe. However, he believes that these companies, despite thriving in the private market, will eventually transition to the public markets.”
The IPO market is experiencing a sluggish phase post the consumer frenzy in 2021. While companies like Birkenstock Holding Ltd, Klayvio Inc, and Instacart faced challenges, recent successes like ALAB and RDDT offer hope for upcoming IPOs.
Valuations in the private market aren’t lagging either. Blue-chip companies are attracting substantial private capital, with robust valuations paving the way for potential IPOs in the near future. The private market is becoming a reliable source of liquidity for companies eying the public stage.
The Private Equity Landscape
Jeff Parks of Stack Capital emphasizes the significance of private equity in offering early exposure to companies like SpaceX.
Current State of the IPO Market
Despite recent challenges, successful IPOs of companies like ALAB and RDDT hint at a potential revival in the IPO market.
Valuations in the Private Market
Blue-chip companies are attracting significant private capital, setting the stage for potential IPOs and showcasing the strength of the private market.