Morgan Stanley seen as front-runner for SpaceX IPO, sources say
By Echo Wang, Joey Roulette and Milana Vinn
NEW YORK, Dec 19 (Reuters) - Morgan Stanley is emerging as a leading contender for a key role in SpaceX's blockbuster initial public offering, as the bank's close ties to CEO Elon Musk give it an edge in his decision, according to three people familiar with the matter.
A selection process, or "bake-off," for the IPO is still underway, with a select group of banks, including Morgan Stanley, Goldman Sachs and JPMorgan, vying for roles, four people familiar with the matter said, adding that there is no certainty Morgan Stanley will secure the coveted "lead left" underwriting position, the sources said.
Musk's ties to Morgan Stanley run deep, dating back at least 15 years, leaving it widely viewed as the leading contender to run the syndicate of underwriters, three of the people said, though no banks have been selected yet and the discussions remain fluid.
The sources spoke on condition of anonymity because the discussions are confidential. Morgan Stanley, Goldman Sachs and JPMorgan declined to comment, while SpaceX did not respond to a request for comment.
SpaceX is one of the world’s largest private companies and its potential IPO would be highly complex.
While Musk has not yet picked the lead banks, a decision could come before the end of the year, with the full syndicate likely to be finalized afterward, two of the people added.
The people cautioned that while plans are progressing, the IPO remains contingent on market conditions, and SpaceX could choose to delay or abandon the offering altogether.
LINKS TO TESLA'S IPO
Morgan Stanley, which has advised Musk for years, was among the banks that took Tesla public in 2010, alongside Goldman Sachs, the lead left, JPMorgan and Deutsche Bank. Morgan Stanley later advised Musk and led the financing for his 2022 acquisition of Twitter, now X.
Musk recently tapped one of his Morgan Stanley bankers on that deal, Anthony Armstrong, to become chief financial officer of his artificial intelligence venture xAI.
The connection runs even deeper through Musk’s family office in Austin, Texas. Another former Morgan Stanley banker who advised Musk on various Wall Street dealings over the years, Jared Birchall, built and runs Excession, which manages his personal assets, Reuters previously reported.
STAFF MEMO
In a staff memo sent last week, SpaceX Chief Financial Officer Bret Johnsen informed staff that the company was preparing for a public offering in 2026.
"Whether it actually happens, when it happens, and at what valuation are still highly uncertain, but the thinking is that if we execute brilliantly and the markets cooperate, a public offering could raise a significant amount of capital," Johnsen wrote.
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