SpaceX Seeks Biggest IPO Ever; Bank of America CEO Brian Moynihan

**SPEAKER_1** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News.
This is Bloomberg Businessweek Daily, reporting from the magazine that helps global leaders stay ahead, with insight on the people, companies, and trends shaping today's complex economy. Plus, global business, finance, and tech news as it happens. The Bloomberg Businessweek Daily podcast with Carol Massar and Tim Stenovec on Bloomberg Radio.

**Isabelle Lee** (0:31)
This is Isabelle Lee and Alexis Christoforous with Bloomberg Businessweek Daily filling in for Carol Massar and Tim Stenovec. A lot of news broke in the last few minutes, Alexis.

**Alexis Christoforous** (0:39)
It's been a busy after the bell for sure.

**Isabelle Lee** (0:41)
Yes. We'll have a nice breather post 5 PM. But for now, it's all about the SpaceX. And joining us live is Anthony Hughes. He's capital markets reporter at Bloomberg News. He rushed over here to help us break this news.

**Alexis Christoforous** (0:51)
I saw him running to the studio.

**Isabelle Lee** (0:54)
So thank you so much, Anthony. We got some more details, but there are things that we already know. I mean, SpaceX targets a 1.77 trillion market value in the NASDAQ IPO. They seek to raise $75 billion, again, in the biggest IPO ever. Anything that you're looking out for or that surprised you?

**Anthony Hughes** (1:11)
Yeah, I think this filing really just confirms a lot of the reporting that's happened over recent days. And I think the really interesting thing that's happened in recent days is that the company has decided to go with a fixed offering price of $135 per share. And I think if you look at the previous iterations of the filing, I think they were considering a range, but it appears that they're now looking at a fixed price. And I think people will speculate or wonder why they're doing that. Because for most IPOs in the US, certainly large IPOs, you would generally go with a range, and gauge the amount of demand out there for the offering, and then ideally price the offering at the high end of that range, and potentially go above. But there's a lot of speculation today about why this is the case. And I think-

**Alexis Christoforous** (2:05)
Why would, I mean, let's just speculate for a moment, shall we? Why would a company, why would this be advantageous to SpaceX to do this? To say, look, this is the price.

**Anthony Hughes** (2:15)
Well, I think some of the comments today have been around the fact that there has been a lot of, you know, the word people use is price discovery in private markets. So, you know, you can see that there's a quoted price on secondary private markets for this stock, and this is not too far away from that. So, you know, it's possible that, you know, people have to take a view really on whether they think this is a very high price or a great bargain, and obviously, it's going to be a range of views.

**Alexis Christoforous** (2:41)
A bargain at a $1.77 trillion valuation.

**Anthony Hughes** (2:44)
Well, I just think that there's going to be, there's a view that a certain portion of the Investment Committee will back Elon and won't be too sensitive to valuation. I'm not saying it's a bargain, but I think it's more that people will generally back Elon Musk, and they probably won't really necessarily, some people won't necessarily do a lot of analysis as to whether the valuation stacks up or not. I think a lot of people think that, yeah, it is a very high, very large valuation and one that is not supported by the historical numbers. But I think-

**Alexis Christoforous** (3:17)
It's a bet on Elon Musk at the end of the day, isn't it?

**Anthony Hughes** (3:19)
Yeah. Well, I think even though the filing doesn't provide forward-looking numbers and financial forecasts, I think there is a lot of hints that they will be making significantly more revenue in the next few years, just through, for instance, that deal that they've done with Anthropic, where they'll be collecting, I think it's a billion dollars a month for the compute that they're providing them. That's one example of where you can see that there will be a quite material increase in the revenue of the company over the next year or so.
When people go and, people who do the valuation work on this will be looking at the companies, likely that they'll be looking, and we're going to find out a bit more about this in the next few days, but we'll be looking to value this probably off like 27, 28, 29, maybe longer earnings. So people are going to, not earnings, sorry, revenue. So they'll be looking out in the future. And when-