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 arsenic a starring contender for a cardinal relation successful SpaceX's blockbuster archetypal nationalist offering, arsenic the bank's adjacent ties to CEO Elon Musk springiness it an borderline successful his decision, according to 3 radical acquainted with the matter.

A enactment process, ​or "bake-off," for the IPO is inactive underway, with a prime radical of banks, including Morgan Stanley, Goldman Sachs and JPMorgan, vying for roles, 4 radical acquainted with the substance said, ‌adding that determination is nary certainty Morgan Stanley volition unafraid the coveted "lead left" underwriting position, the sources said.

Musk's ties to Morgan Stanley tally deep, dating backmost astatine slightest 15 years, leaving it wide viewed arsenic the starring contender to tally the syndicate ‌of underwriters, 3 of the radical said, though nary banks person been selected yet and the discussions stay fluid.

The sources spoke connected information of anonymity due to the fact that the discussions are confidential. Morgan Stanley, Goldman Sachs and JPMorgan declined to comment, portion SpaceX did not respond to a petition for comment.

SpaceX is 1 of the world’s largest backstage companies and its imaginable IPO would beryllium highly complex.

While Musk has not yet picked the pb banks, a determination could travel earlier the extremity of the year, with the afloat syndicate apt to beryllium finalized afterward, 2 of the radical added.

The radical cautioned that portion plans are progressing, the IPO ⁠remains contingent connected marketplace conditions, and SpaceX could take to hold ‌or wantonness the offering altogether.

LINKS TO TESLA'S IPO

Morgan Stanley, which has advised Musk for years, was among the banks that took Tesla nationalist successful 2010, alongside Goldman Sachs, the pb left, JPMorgan and Deutsche Bank. Morgan Stanley aboriginal advised Musk and led the financing for his 2022 acquisition of Twitter, present X.

Musk ‍recently tapped 1 of his Morgan Stanley bankers connected that deal, Anthony Armstrong, to go main fiscal serviceman of his artificial quality task xAI.

The transportation runs adjacent deeper done Musk’s household bureau successful Austin, Texas. Another erstwhile Morgan Stanley banker who advised Musk connected assorted Wall Street dealings implicit the years, Jared Birchall, built and runs Excession, which manages his idiosyncratic assets, Reuters antecedently reported.

STAFF MEMO

In a unit memo sent past week, SpaceX Chief Financial ​Officer Bret Johnsen informed unit that the institution was preparing for a nationalist offering successful 2026.

"Whether it really happens, erstwhile it happens, and astatine what valuation are inactive highly uncertain, but the ‌thinking is that if we execute brilliantly and the markets cooperate, a nationalist offering could rise a important magnitude of capital," Johnsen wrote.