Elon Musk’s space exploration company SpaceX is preparing to list on the stock market next year in a move that could raise more than $25bn (£19bn) and value the business at more than $1tn, according to reports.

SpaceX, which designs, builds and launches rockets, is said to have started discussions with banks about an initial public offering (IPO). It could join the stock market in about June or July, according Reuters, which cited an unnamed source familiar with the matter.

A flotation could rival the market value that the oil company Saudi Aramco achieved during its listing in 2019, which remains the biggest in history. It raised $29bn at the time, at a valuation of $1.7tn.

SpaceX could raise “significantly more than £30bn”, according to a separate report by Bloomberg, which said Musk was targeting an overall valuation of about $1.5tn.

Reuters said SpaceX planned to use the funds from the public listing to fund its space-based datacentres, including buying the chips required to run them.

The company was expected to make about $15bn in revenue in 2025, rising to between $22bn and $24bn in 2026, Bloomberg reported. Most of this is due to come from Starlink, its internet satellite business.

Last week, media reports suggested SpaceX was in talks with investors about a share sale that would value it at $800bn, pitting it against OpenAI to become the most valuable private company in the world.

However, Musk said the reports were inaccurate on Saturday. He wrote: “SpaceX has been cashflow positive for many years and does periodic stock buybacks twice a year to provide liquidity for employees and investors. Valuation increments are a function of progress with Starship and Starlink and securing global direct-to-cell spectrum that greatly increases our addressable market.”

SpaceX was approached for comment.