economy
SpaceX IPO: How Can I Buy Shares, and What Are the Risks?
Elon Musk firm plans the biggest stock market launch in history – but experts have flagged potential downsides
TL;DR
- SpaceX's IPO is scheduled for June 12th with a valuation of $135 per share, aiming to raise $75 billion.
- Up to a quarter of shares may be reserved for individual investors, a higher proportion than typical.
- Shares will be listed on the Nasdaq, and may appear in index tracker funds.
- UK investors can access shares through brokers like AJ Bell and Hargreaves Lansdown, with minimums around £1,000.
- The official price will be set on June 11th based on investor interest; oversubscription might lead to allocation limits.
- Elon Musk will retain 82.4% of voting power, meaning individual shareholders will have little say in company operations.
- Experts suggest SpaceX may be overvalued, with risks including launch failures, regulatory issues, competition, and Musk's public statements.
- Key growth areas for SpaceX include defense initiatives for the US government and the Starship reusable launch system.
- Investing in individual companies is inherently riskier than diversified funds; caution is advised regarding the proportion of investment.
- Short-term gains may be possible due to index fund buying, but long-term prospects and potential profit-taking are considerations.