This move may signal a shift in the balance of power between tech companies and Wall Street firms. SpaceX's negotiation could set a precedent for future IPOs, potentially reducing fees for other large offerings, which suggests a more cost-effective approach to going public.
Elon Musk Plays Hardball With Wall Street Firms
SpaceX is taking a hardline stance on IPO fees, negotiating to pay base fees under 0.75% to banks working on the deal, according to Bloomberg. This is significantly lower than the typical 4%-7% fees usually commanded for IPOs. The company, led by Elon Musk, is targeting a valuation of $1.8 trillion and could raise up to $80 billion. The development was reported by Axios.
This move may signal a shift in the balance of power between tech companies and Wall Street firms. SpaceX's negotiation could set a precedent for future IPOs, potentially reducing fees for other large offerings, which suggests a more cost-effective approach to going public.
Elon Musk Plays Hardball With Wall Street Firms
SpaceX is taking a hardline stance on IPO fees, negotiating to pay base fees under 0.75% to banks working on the deal, according to Bloomberg. This is significantly lower than the typical 4%-7% fees usually commanded for IPOs. The company, led by Elon Musk, is targeting a valuation of $1.8 trillion and could raise up to $80 billion. The development was reported by Axios.