In June 2021, Tesla shares soared by over 3.5%. Such a rapid increase was fueled by the speech of corporation CEO Elon Musk. He announced plans to list Starlink shares on a stock exchange. What are the reasons for the keen interest in this project, when will the Starlink IPO be held, and what is this company - we will answer these questions in the article.

What is Starlink?

Starlink is a project of the SpaceX corporation. Its main activity is to deploy and provide high-speed satellite Internet services. Elon Musk’s main idea is to give access to a virtual network even in those parts of the planet where it was previously impossible or too expensive.

The project has 3 distinctive features that make it different from other satellite providers:

  • The price. According to preliminary estimates, the user equipment will cost no more than $100-300. The same sum will be charged as a monthly subscription fee for unlimited access to the Internet at the speed of 10 Mbps.
  • The speed. Iridium, the biggest provider of satellite communication services, has 76 satellites and offers its client the Internet connection at the reception speed of 700 Kbps and the transmission speed of 400 Kbps. Such a shaky service costs at least $7,000, whereas the Starlink project allowed the reception speed of nearly 200 Mbps and the transmission speed of 47.7 Mbps in 2020 when 800 satellites were launched.
  • Availability. Thanks to a relatively low price of the user equipment and a wide network of satellites, the Internet connection provided by Starlink can be available to almost every customer.

Currently, the Starlink project has almost 1,800 small satellites in orbit, and its general plan is to launch over 12 thousand satellites. The realization of this plan will cost at least 10 billion dollars. Elon Musk sees the Starlink shares as one of the means for attracting investments. They will help to provide Internet access to any place on the planet as soon as September 2021. Indeed, an IPO will offer bright prospects for the project, but Elon Musk doubts that the listing will occur anytime soon.

When will an IPO be held?

As soon as the company sends the planned number of satellites in orbit to create continuous global coverage, it will need to obtain all the necessary telecommunication permits to get profits from potential users. For that, it will need to apply to relevant regulators, and the process can take quite a long time. It may take even longer for the Starlink project to become a viable source of funding for other SpaceX projects. This is why Elon Musk believes that the Starlink IPO will take place no earlier than in a few years.

Besides, the profitability of SpaceX’s Starlink shares is unpredictable, and this is another reason why Elon Musk does not hurry to list them. Earlier, Morgan Stanley analysts estimated that the Starlink project was worth over $40 billion. At the beginning of 2021, their estimates were revised to $74 billion. It is hard to foresee what Starlink capitalization will be after a full-fledged launch, so the current price of Starlink shares is unpredictable and no one can say when they will get into free circulation.

The only thing that is known for sure is that the long-term shareholders of Tesla Corporation will have priority in the placement of Starlink shares.

How much will Starlink shares cost?

Many investors wonder how to buy Starlink shares. However, it is not a public company yet, and the exact date of the IPO remains a secret. At the moment, even the Starlink share symbol under which it will be traded on the stock exchange is unknown. If you want to keep tabs on the updates on the new projects' IPOs, open an account with InstaForex. This broker notifies its clients about all new assets and earning opportunities.

Elon Musk says a too early IPO may have a bad impact on the project because it is impossible to forecast its profitability. Similarly, it is difficult to foresee the price of Starlink shares. According to preliminary estimates of some analysts, the listing procedure will start in the fourth quarter of 2021, while the project is expected to be repaid no sooner than in 2033.

Conclusion

Starlink is a satellite communications system developed by SpaceX. According to its founder, this system will go public soon. So far, no exact dates have been set for the IPO. There is even no Starlink share symbol. Despite this, many investors who acknowledged the bright prospects of the project are ready to invest big money in it.