SpaceX has officially begun the process of selecting investment banks, marking the most concrete step yet toward an initial public offering (IPO). If successful, this could become one of the largest IPOs in recent capital market history.
On December 14, sources familiar with the matter revealed that SpaceX executives are scheduled to interview investment bankers this week—a process known as a "bake-off"—to appoint advisors for its potential listing. Meanwhile, CFO Bret Johnsen confirmed in an internal memo to employees last Friday that the company is preparing for a possible public offering next year. He stated, "If we execute well and market conditions align, the IPO could raise significant capital."
Although the exact IPO timeline remains undecided and management emphasizes that going public still carries "high uncertainty," SpaceX's valuation has surged in secondary market transactions. Reports indicate that recent secondary share sales have pushed the company's valuation to approximately $800 billion, doubling from $400 billion earlier this summer.
This valuation surge has not only captured public market attention but will also directly impact the financial statements of its long-term backers. Alphabet, an early investor holding SpaceX shares since 2015, is expected to record substantial paper gains from the latest valuation spike. Market participants are closely watching for related disclosures in its upcoming earnings reports.
**Bank Selection Begins as Valuation Soars to $800 Billion** After more than two decades in operation, SpaceX has grown into a key U.S. government contractor, with businesses spanning satellite launches and crewed spaceflight. The expansion of its Starlink satellite internet service has further bolstered its valuation.
According to reports, CFO Bret Johnsen explicitly mentioned the possibility of a 2026 IPO in internal communications. The timing surprised some close to the company, as it coincides with a revival in the U.S. IPO market after years of dormancy. Bankers remain optimistic about 2026 prospects, and a successful SpaceX listing would undoubtedly be a blockbuster deal.
However, Johnsen also cautioned employees about risks, noting that IPO plans remain contingent on execution and market conditions.
While advancing IPO preparations, SpaceX has seen a significant revaluation in private markets. Earlier reports revealed that the company is conducting a secondary share sale at an implied $800 billion valuation.
Further details indicate that SpaceX's internal tender offer price was set at $421 per share—a sharp increase from previous secondary market trades. Just this summer, the company was valued at $400 billion.
**Alphabet Poised for Major Paper Gains** The surge in SpaceX's valuation stands to benefit its major shareholder, Alphabet. Reports suggest that with SpaceX's latest tender offer implying an $800 billion valuation, Alphabet is expected to book another substantial paper gain.
Alphabet has been a SpaceX investor since 2015, when it participated in a $1 billion funding round alongside Fidelity Investments, collectively acquiring a roughly 10% stake. While Alphabet declined to comment and does not disclose specific private holdings, past earnings reports have shown how SpaceX's valuation changes boost its financial performance.
In April, Alphabet reported $8 billion in "unrealized gains," widely attributed to SpaceX's $350 billion valuation in a late-2023 tender offer. These gains helped Alphabet's first-quarter net profit exceed Wall Street expectations.
Such earnings are typically categorized as "unrealized gains on non-marketable equity securities." With the latest valuation jump, investors will closely monitor potential accounting gains in Alphabet's next earnings report.
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