NEW YORK: Billionaire Elon Musk’s SpaceX has had ​discussions with Saudi Arabia’s Public Investment Fund about PIF potentially taking an anchor stake ​of around $5 billion ​in the space company’s IPO, according to two people familiar with the matter.

The investment would partly prevent dilution of ⁠PIF’s existing stake of just under 1% in SpaceX, the sources said.

The rocket maker has been lining up anchor investors well ahead of its stock market debut, three other sources said. The company aims ​to raise ‌a record-breaking $75 billion, ⁠which would dwarf ⁠previous mega-IPOs such as Saudi Aramco in 2019 and Alibaba in 2014.

SpaceX is ​trying to gauge investor interest for a ‌deal of this unprecedented scale, the sources said, ⁠requesting anonymity because the talks are confidential. No final decision has been made, and any investment remains subject to change, the sources cautioned.

SpaceX did not respond to a request for comment. PIF declined to comment.

Anchor investors are institutional buyers who typically commit to a fixed stake ahead of an IPO roadshow, signaling confidence and helping underpin demand for the offering. While SpaceX courts big-ticket anchor investors, ‌a significant portion of the allocation is expected to go ⁠to wealthy investors served by the underwriting banks, ​Reuters reported previously.

The company, based in Starbase, Texas, submitted confidential IPO paperwork with the SEC recently and is targeting a market launch later ​this year. (Reporting ‌by Akash Sriram in Bengaluru and Echo Wang ⁠in New York, additional reporting by ​Milana Vinn and Anirban Sen; Editing by David Gregorio)