SpaceX has reportedly held discussions with Saudi Arabia’s Public Investment Fund (PIF) to come on board as a $5 billion anchor investor in its IPO. The talks are ongoing, and no final deal has been confirmed yet, reports Reuters. If it is successful, the fund could emerge as a key early investor in the listing. The development comes days after reports suggested that the Elon Musk-led firm has confidentially filed for an IPO in the US, aiming to raise around $75 billion at a target valuation of $1.75 trillion.
The proposed investment would likely allow PIF to secure a meaningful stake in SpaceX at the time of listing, potentially increasing its current exposure to the company. While the Saudi fund already has a small indirect holding – estimated at less than 1% – this fresh capital infusion could position it as a major stakeholder in the post-IPO structure. Notably, anchor investors are important in large IPOs as they agree to invest early and take a fixed stake before the IPO marketing process begins. This helps build confidence in the offering and attracts more investors. And for SpaceX, bringing in such investors is particularly important given the huge size of its planned IPO.
However, the report also suggests that PIF is not the only investor in discussions. SpaceX has also been reaching out to several large institutional investors ahead of its planned market debut, looking to bring in anchor investors willing to commit significant funds early. These talks are mainly to understand how much interest there is in what could be one of the biggest IPOs in history. The discussions are private, still in progress, and no final decisions have been taken so far.
Investor interest in SpaceX is being driven by its diversified and rapidly scaling business model. While the company initially built its reputation on reusable rocket launches and contracts with agencies like NASA and the US Department of Defense, its Starlink satellite internet division has become a major revenue engine. With millions of users globally, Starlink is helping the company generate annual revenues estimated in the range of $15-16 billion, with profitability reportedly reaching around $8 billion. Even SpaceX’s recent merger with xAI has also lifted the combined entity’s valuation to around $1.25 trillion.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
