SpaceX Could File to IPO as Soon as This Week. Here's Everything Investors Need to Know.

Elon Musk's SpaceX appears to be on the verge of the biggest initial public offering (IPO) in history. A recently published report from The Information suggests that the company could file its IPO prospectus with the Securities and Exchange Commission (SEC) either this week or next.

Reports suggest that SpaceX is looking to raise $75 billion in IPO funding, a level that would value the company at roughly $1.75 trillion. With the space-tech company potentially on track to make big stock-listing moves in the near future, here's what investors need to know.

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SpaceX's IPO could make waves

Valuations for space-tech companies have been soaring over the last year, and reports and speculation surrounding SpaceX's IPO have been a source of bullish momentum for multiple players in the category recently. Recent reports point to SpaceX going public within the next few months.

Investors and analysts now seem to expect that the company will file its IPO prospectus in the very near future and then carry out its public market debut sometime in June. The public stock sale is broadly expected to value Elon Musk's space-tech company at $1.75 trillion -- a level that would make for a record-setting public debut. Some investors have also speculated that SpaceX could be combined with Musk's Tesla (NASDAQ: TSLA) at some point.

SpaceX commands roughly 80% of the commercial rocket-launch market and also operates the Starlink telecommunications service. Starlink provides internet service and allows users to access communications services in areas that might not otherwise offer high-speed connections. In addition to commercial rocket-launch and satellite-communications services, the company could also have big growth opportunities as a provider of defense-related services to government customers.

SpaceX under the microscope

If and when SpaceX files its prospectus to go public, investors will finally get a much closer look at the company's financial profile. The space-tech business has been expanding at an impressive pace and commands leadership positions in rocket-launch and satellite-based telecommunication services, but the company's prospectus filing should provide much greater insight into its margin picture and important areas of the balance sheet. While space commercialization looks to be a powerful growth trend in the coming decades, there are still some big questions about SpaceX's financials.

According to a report from Reuters, SpaceX CEO Elon Musk wants up to 30% of the company's initial public stock offering to be available to retail investors. In a typical IPO, only between 5% and 10% of the initial stock sale is made available to retail investors -- and those purchasers often need to buy large share blocks. If reports about Musk's plans for retail investment allotments on the SpaceX IPO prove to be correct, the company's public debut could be poised to make history on multiple levels.

Growth for the space industry is an exciting trend that's worth paying attention to for investors, but there are still a lot of important questions when it comes to SpaceX as a potential investment candidate. It seems there's a good chance investors will be getting a much closer look at the company in the very near future.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.