Key facts
- SpaceX is preparing for an IPO in mid-June, aiming to raise around $75 billion.
- The company will issue 555.6 million shares at $135 per share, valuing it at $1.77 trillion.
- A portion of the shares, valued at $3.75 billion, will be allocated to select employees, friends, and family of executives.
- These insider recipients will not be subject to a lockup period and can sell their shares immediately after the IPO.
- The IPO filing includes a sentence suggesting potential future equity issuances for significant transactions.
SpaceX is gearing up for a significant IPO in mid-June, with plans to issue 555.6 million shares at $135 each, valuing the company at $1.77 trillion and aiming to raise approximately $75 billion. A notable aspect of the offering is the allocation of 5% of the shares, valued at $3.75 billion, to certain employees, friends, and family of executives. Unlike Elon Musk and other top executives who will be subject to a year-long lockup period, these recipients will be free to sell their shares immediately after the company's debut.
An amended IPO filing includes a sentence suggesting that SpaceX "may issue a significant amount of equity in connection with future transactions," which some interpret as a potential clue towards a future merger with Tesla, Musk's second-largest holding. The IPO is expected to create a substantial windfall for those receiving the insider allocations, allowing them to potentially profit significantly overnight.
However, some market observers express caution. Morningstar has suggested that SpaceX may be overvalued by half, advising smart investors to wait out the hype. Additionally, concerns are being raised about the broader market impact of multiple large IPOs and share issuances, with some analysts warning of potential risks to index funds due to the concentration of gains in a few mega-cap stocks.