SpaceX’s highly anticipated initial public offering (IPO) is set to create a new wave of millionaires among the company’s current and former employees, with more than 4,400 workers expected to see their stock holdings cross the seven-figure mark.
The rocket maker, founded by Elon Musk, is expected to go public at $135 per share, giving it a valuation of about $1.77 trillion. The listing is expected to be one of the largest IPOs ever and could ultimately boost the fortunes of employees who received company stock as part of their compensation packages.
According to an analysis by San Francisco-based investment platform Hill.com, more than 4,400 current and former SpaceX employees are likely to become millionaires through the IPO. Around 400 of them are expected to hold stock worth at least $100 million.
SpaceX employees among biggest beneficiaries
While Elon Musk and major investors are expected to reap billions from the IPO, thousands of SpaceX employees stand to benefit as well. SpaceX currently employs around 22,000 people, and hundreds of former workers still hold shares earned during their time at the company. Many employees, including engineers, factory workers and launch-site staff, received stock awards alongside their salaries.
Speaking to the NYT, Andrew Benson, founder and chief executive of Hill.com, said the scale of wealth creation among employees is unusual. “With most IPOs, you’re usually only going to see the founders become billionaires,” Benson said. “It’s uncommon to have 400 people at that threshold. It speaks to the enormous wealth that’s being created here.”
Former SpaceX launch engineer’s stake worth millions
Among those set to benefit is Trevor Hise, a former SpaceX launch engineer who joined the company in 2011. Hise worked with SpaceX for 12 years and received more than 100,000 shares. At the expected IPO price of $135 per share, those holdings could be worth at least $13.5 million.
Another former employee, Gavin Petit, joined SpaceX in 2012 as an engineer overseeing launches. He said the company awarded him several thousand shares when he joined, when each share was worth about $13.80.
Petit chose to receive some of his bonuses in stock rather than cash, despite uncertainty over the company’s future and the fact that its rockets were still proving themselves. Over time, Petit sold some stock through SpaceX’s private liquidity events and used part of the proceeds to pay off his house in Denver. However, he retained most of his holdings and now owns more than 50,000 shares.
SpaceX IPO: A landmark moment in corporate wealth creation
SpaceX IPO could become one of the biggest employee wealth-creation events in modern business history. The scale of the gains has drawn comparisons with landmark public offerings by major technology companies such as Google and Facebook, although SpaceX operates in a very different industry.
The effects of the IPO may extend beyond SpaceX employees themselves.
In South Texas, where SpaceX operates major facilities near Starbase and Brownsville, thousands of workers live and spend their income locally. A large increase in employee wealth could boost local businesses, housing markets and community investments as well.
The planned IPO comes after years of rapid growth for SpaceX. The company has transformed the space industry through reusable rockets, carried astronauts to the International Space Station and built one of the world’s largest satellite networks through Starlink.