Elon Musk’s SpaceX drives hard bargain with bankers ahead of IPO: report

SpaceX is currently in negotiations with financial institutions in preparation for what may become the largest IPO in history. The company is aiming to raise around $75 billion in a public offering, with reports suggesting that SpaceX is pushing for underwriting fees of less than 0.75%, as mentioned by Bloomberg News.

Typically, underwriting fees for smaller IPOs range from 4% to 7%, but SpaceX is looking to pay significantly less for its massive offering. Despite the lower fee percentage, Wall Street banks involved in the deal could still earn a combined $500 million in fees, showcasing the scale of the IPO.

Goldman Sachs and Morgan Stanley are leading the IPO, with expectations of receiving a larger portion of the fee pool compared to other firms in the syndicate. The negotiations over fees come at a time when SpaceX employees are also working together to secure discounted wealth management services and tax strategies ahead of the IPO, as reported by Bloomberg.

The potential IPO, targeting a valuation of approximately $1.8 trillion, could set new records in terms of capital raised in public markets. Despite the lower underwriting fees, the size of the offering is expected to attract significant interest from investors and could have a substantial impact on Elon Musk’s personal wealth, potentially making him the world’s richest person.