Wall Street’s biggest banks are rolling out exclusive investor events ahead of SpaceX’s highly anticipated initial public offering, with founder Elon Musk making a surprise virtual appearance to pitch the company’s growth prospects.
The rocket and aerospace company is expected to raise a record US$75 billion in its market debut next week, valuing the firm at about US$1.75 trillion and making it one of the world’s most valuable listed companies.
According to Reuters, Musk joined a JPMorgan-hosted event by video link, telling clients that SpaceX was entering a “massive new growth phase” and required fresh capital to support its expansion plans. He also said the company’s revenue had become “much more predictable” than in previous years.
Major Wall Street banks including JPMorgan, Bank of America and Morgan Stanley have organised large-scale events for wealthy clients and financial advisers, offering access to senior SpaceX executives ahead of the listing.
JPMorgan hosted around 3,500 clients at its newly opened headquarters in New York, where Chief Executive Officer Jamie Dimon said the bank wanted to give individual investors the same level of access typically enjoyed by institutions. SpaceX President and Chief Operating Officer Gwynne Shotwell and Chief Financial Officer Bret Johnsen attended the event in person.
Bank of America, which is leading retail distribution efforts for the IPO in the US, invited more than 5,000 clients to launch-related events and livestreams, while Morgan Stanley is scheduled to host a separate session for wealth management clients on Monday.
Despite the excitement surrounding the listing, SpaceX suffered a minor setback after S&P Global said it would not alter its index inclusion requirements, effectively ruling out an immediate entry into the benchmark S&P 500 following its debut.
The IPO has become one of the most talked-about listings on Wall Street, with investors drawn to SpaceX’s ambitions in satellite communications, space infrastructure and long-term plans involving Mars exploration.
