Norway wealth fund in talks with SpaceX as IPO plans emerge

Norway’s $2.2 trillion sovereign wealth fund is evaluating a potential investment in SpaceX, according to comments made by its deputy chief executive, as cited in a Reuters report.

The fund, the largest of its kind globally, is in discussions with the aerospace company controlled by Elon Musk.

Speaking in an interview, deputy CEO Trond Grande confirmed ongoing engagement with the firm.

“We have dialogue with companies, right? So, we also have dialogue with SpaceX,” Grande said, as reported by Reuters.

SpaceX IPO plans gain momentum

The comments come as SpaceX is widely expected to move towards a public listing.

The company has confidentially filed for an initial public offering with the US Securities and Exchange Commission.

The confidential filing allows companies to receive regulatory feedback before making public disclosures. Details such as the number of shares and pricing are expected to be revealed in later filings.

The report indicated that SpaceX could seek a valuation exceeding $1.75 trillion.

If achieved, this would make it the largest stock market listing in history.

Market participants believe the IPO could raise more than $50 billion, surpassing the record set by Saudi Aramco’s 2019 listing.

Growth driven by rockets and Starlink

SpaceX’s rapid expansion has been driven by its reusable rocket technology and its satellite internet service, Starlink.

These innovations have significantly reduced launch costs while opening new revenue streams through global broadband connectivity.

The company’s valuation has also been supported by its recent merger with Musk’s artificial intelligence venture, xAI.

The deal valued SpaceX at approximately $1 trillion, while xAI was valued at around $250 billion.

Musk oversees a wide range of businesses, including electric vehicle maker Tesla, along with other technology ventures.

IPO could reshape investor sentiment

If SpaceX proceeds with its IPO, analysts believe it could revitalise the global IPO market, which has seen subdued activity in recent years.

Demand is expected from both institutional investors and retail participants, driven by growing interest in high-profile listings and technology-led growth stories.

Retail investor participation has increased significantly in recent years due to the expansion of online investment platforms.

Investors are drawn not only to Musk’s long-term vision but also to the company’s growing satellite and launch services businesses.

Broader “Muskonomy” under spotlight

A public listing would also bring increased scrutiny to what analysts describe as the “Muskonomy” the network of companies led by Musk.

In addition to SpaceX and Tesla, Musk is involved in ventures such as Neuralink and The Boring Company.

Reports earlier this year suggested SpaceX generated around $8 billion in profit on revenues between $15 billion and $16 billion last year.

The company is also competing with rivals such as Blue Origin, founded by Jeff Bezos, in the private space sector.

Meanwhile, NASA is increasingly relying on commercial partners for missions, further boosting the sector’s growth outlook.

SpaceX has also proposed launching up to one million solar-powered satellites that could function as orbital data centres, potentially expanding artificial intelligence infrastructure beyond Earth.

With artificial intelligence emerging as a key investment theme, SpaceX’s potential IPO could mark a significant moment for both the space and technology industries.

Market backdrop and fund performance

Grande’s comments came after the Norwegian wealth fund reported a first-quarter loss of 636 billion crowns ($68.44 billion), as mentioned in Reuters reports.

The decline was attributed to weakness in global equity markets amid geopolitical tensions in the Middle East.

Despite the loss, the fund continues to explore new investment opportunities, including high-growth technology companies such as SpaceX.