Elon Musk can still enchant investors with his vision of the future.
Any questions about SpaceX’s record-breaking initial public offering — be it about the valuation, the company’s trajectory or technical execution — were brushed aside as the retail marketing for the deal got under way. Smitten with the world’s richest man and lauding his character, many participants at an investor event hosted by Jamie Dimon at JPMorgan Chase’s headquarters chose to focus on the big picture.
“It was an epic event,” said Sidd Pagidipati, founder and chairman of Ayon Capital. “This company I think will be the biggest, largest, most iconic company in human civilization.” Though Pagidipati said he’d limit exposure to 1% to start, he is an unwavering believer in SpaceX. “As long as Elon stays alive, I’m not skeptical,” he said.
Bankers across Wall Street have been meeting with potential buyers to pitch the terms of the listing by the rocket, satellite and artificial intelligence company as it targets a historic debut. The Starbase, Texas-based company kicked off the marketing process for its $75 billion initial public offering, set to be the biggest of all time, at a fixed price of $135 per share.
Some research analysts are telling would-be buyers that their models show 100 times revenue growth for SpaceX’s AI division by the end of the decade, to help justify the targeted valuation of $1.8 trillion. For the investors emerging from the JPMorgan event, those numbers sounded entirely justified.
It’s “not an outrageous valuation for the company,” said Dylan Hixon, president of Arden Road Investments, who’s gained exposure to the company over the years through venture funds and Special Purpose Banks. He estimates SpaceX comprises around 20% of their entire portfolio, and says they will continue to invest after the IPO. “This is a generational company.”
