Elon Musk's SpaceX is about to launch the largest IPO in history, aiming to raise $75 billion with a valuation exceeding $2 trillion, which will overwhelmingly shatter Saudi Aramco's record of $29.4 billion. Goldman Sachs has secured the top position on the prospectus cover, followed closely by Morgan Stanley, with Bank of America, Citigroup, and JPMorgan Chase lining up behind them. A century-level feast for Wall Street investment banks is gradually unfolding.

Written by: Zhao Ying

Source: Wall Street Insight

Goldman Sachs will occupy the most prominent position in SpaceX's largest-ever IPO, and this deal is expected to reshape the landscape of Wall Street investment banks.

According to a report by Bloomberg on Wednesday, insiders revealed that Goldman Sachs will be listed first on the cover of SpaceX’s initial public offering prospectus, with Morgan Stanley following closely as a co-lead underwriter.

Bank of America, Citigroup, and JPMorgan Chase are arranged alphabetically on the cover. SpaceX is expected to officially submit its IPO application documents by this Wednesday.

SpaceX's IPO aims to raise as much as $75 billion, with a valuation expected to exceed $2 trillion. If successful, it will easily surpass Saudi Aramco's record of $29.4 billion set in 2019, becoming the largest listing transaction in history. This deal is expected to bring in unusually substantial fees to participating underwriter investment banks.

Cover Position Dispute: Goldman Sachs Takes the "Top Seat"

In high-profile IPO transactions, the order of investment banks on the cover of the prospectus holds significant symbolic and practical meaning. A forward cover position often implies a more active participation role, and in some cases corresponds to a larger share of the underwriting fee allocation.

Goldman Sachs in the top cover position means it will play the most central coordinating and leading role throughout the underwriting process. Morgan Stanley as a co-lead underwriter will also occupy an important position in this century-level transaction. Bank of America, Citigroup, and JPMorgan Chase are lined up alphabetically behind them. Insiders noted that relevant negotiations are still ongoing and transaction details may still change.

Aside from the five core lead underwriters, this transaction has also attracted numerous international investment banks, making the scale of the underwriting syndicate commensurate with the deal itself.

According to previous reports by Bloomberg, Citigroup joined the lead underwriter group in March of this year, co-leading the issuance with the other four institutions. In terms of regional assignments, Barclays is responsible for stock subscription orders in the UK market, Deutsche Bank and UBS are handling orders in the European market, Royal Bank of Canada is tasked with the Canadian market, Mizuho Financial Group is focusing on the Asian market, and Macquarie Group is concentrating on the Australian market.

Valuation and Scale Set to Break Historical Records

The potential scale of SpaceX's IPO has caught market attention. The fundraising goal for this issuance is as high as $75 billion, and the company's valuation is expected to exceed $2 trillion.

For reference, Saudi Aramco's IPO in 2019 raised about $29.4 billion, which had long been regarded as the largest IPO record globally. If SpaceX's fundraising target is achieved, it will overwhelmingly set a new record.

SpaceX's business encompasses areas such as rocket launches, satellite internet, and artificial intelligence. Once this listing materializes, it will not only become a landmark event in the capital markets but will also bring unprecedented underwriting fee income to the Wall Street investment banks involved.