Citigroup Wins Lead on SpaceX’s $75B IPO, Doubles Micron Target
C•Citigroup secured a lead role alongside Goldman Sachs and Morgan Stanley on SpaceX’s proposed $75 billion IPO targeting a more than $2 trillion valuation. Citi also raised its Micron price target to $840 from $425, citing an anticipated DRAM and high-bandwidth memory upcycle.
1. Citigroup Named Lead Bookrunner for SpaceX IPO
Citigroup secured a position alongside Goldman Sachs and Morgan Stanley as lead bookrunner on SpaceX’s preliminary IPO prospectus, positioning it for a significant share of underwriting fees on what could be the largest listing ever.
2. Potential Fee Pool and Valuation Context
The offering aims to raise up to $75 billion at a valuation exceeding $2 trillion, surpassing Saudi Aramco’s record $29.4 billion IPO. This mega-deal could generate an unusually large fee pool, boosting Citigroup’s investment banking revenue.
3. Citigroup Doubles Micron Price Target to $840
Citi lifted its price target on Micron Technology to $840 from $425 while maintaining a Buy rating, citing expectations of rising DRAM average selling prices and constrained high-bandwidth memory supply supporting a broader memory upcycle.
4. Implications for Citigroup's Business
Securing a lead mandate on SpaceX’s mega-IPO enhances Citigroup’s global investment banking franchise, while its bullish semiconductor research underscores the strength of its equity and fixed-income trading commissions alongside advisory services.
