Global richest man Elon Musk’s space exploration technology company, SpaceX, officially went public on Friday (12th), and the fortunes of thousands of employees soared. According to a report by the well-known US real estate brokerage firm Redfin, these employees, if they pooled their resources, could potentially buy all the housing in specific towns.
Redfin’s latest report indicates that the massive initial public offering (IPO) by SpaceX will create astounding wealth. Thousands of current and former SpaceX employees are set to become millionaires, with some even poised to become billionaires overnight.
The company stated that if current and former employees joined forces, theoretically, they could buy around 40% of the housing in San Antonio, Texas, the closest major metropolitan area to SpaceX’s headquarters – Starbase.
Redfin also presented a few other scenarios: these employees could buy approximately 15% of the housing in Houston, or they could purchase all the properties in McAllen, Texas, with a surplus of around $74 billion; or, theoretically, these current and former employees could buy nearly 5% of the housing in the Los Angeles metropolitan area.
The report mentioned that according to SpaceX’s S-1 prospectus, its IPO could potentially set a historic record: SpaceX plans to sell 555,555,555 shares of common stock at a price of $135 per share, raising nearly $75 billion in funds and pushing the company’s valuation to $1.77 trillion.
Redfin estimates that current and former employees hold approximately 10% to 15% of the company’s shares, with a total value estimated between $150 billion to $250 billion. Their report adopts a midpoint of $200 billion for calculations.
Chen Zhao, Redfin’s director of economic research, stated: “While these calculations are purely hypothetical and do not represent the actual use of the IPO proceeds, they demonstrate the astonishing scale of wealth creation from SpaceX’s public listing.”