SpaceX is preparing to go public at a valuation that would make it the most valuable company to ever hit the public markets, and the banks fighting for a piece of the deal are learning a hard lesson: Elon Musk’s company sets the terms, not Wall Street.
The planned IPO targets raising $75 billion through the sale of 555.6 million shares priced at $135 each, which would value SpaceX at roughly $1.75 trillion. And the banks lining up to participate? Several of the smaller ones are essentially working as glorified salespeople, marketing shares for small fees without earning credit roles in the deal.
A syndicate built on hierarchy
Goldman Sachs holds the coveted lead left underwriter position, the spot that commands the most prestige and compensation. Morgan Stanley and JPMorgan Chase are also part of the syndicate, which spans 21 to 23 investment banks total.
Junior banks in the syndicate are being handed what amount to distribution tasks. They get to place shares with their clients, collect modest fees, and put SpaceX on their deal tombstones.
