SpaceX targets $1.75 trillion valuation including greenshoe option in record IPO, sources say

SpaceX, Elon Musk's rocket and satellite company, plans to target a valuation of $1.75 trillion, including a greenshoe option, in its blockbuster initial public offering, two people familiar with the matter told Reuters on Tuesday.

After some early meetings with investors, or a "testing the waters" process, the company has indicated it plans to raise at least $75 billion, the sources said, requesting anonymity to discuss confidential information. The greenshoe option gives underwriters the right to sell additional shares if investor demand exceeds expectations, typically up to 15%.

The IPO is expected to be structured as an all-primary offering, meaning all proceeds would go to the company rather than existing shareholders, the sources said.

The move marks the first time SpaceX has communicated specific fundraising and valuation targets to banks after early investor meetings, as it prepares for what is expected to be the largest ever IPO. Reuters previously reported the company was considering a preliminary valuation of around $1.75 trillion.

The roadshow for the IPO is set to begin on Thursday, Reuters previously reported. The plans, including the size of the raise, are subject to change as investor meetings get under way, the sources cautioned.

The IPO will give public investors a rare opportunity to buy into Musk's vision for space, satellite communications and artificial intelligence through SpaceX, which has emerged as the crown jewel of the world's richest person's business empire.

SpaceX did not respond to a request for comment.