economy
SpaceX's IPO could be the largest-ever public offering—what to know before investing, from experts
Elon Musk's rocket and satellite firm is on track to become the largest U.S. public offering in history.
TL;DR
- SpaceX has confidentially filed for an IPO, potentially seeking a $1.75 trillion valuation and aiming for a June listing.
- The offering could be the largest U.S. debut ever, potentially raising up to $75 billion.
- Experts advise investors to research float percentage, company sales (at least $1 billion in the past 12 months for better market performance), and the stock's role in their portfolio.
- A low float (below 7%) is considered a 'red flag' and can lead to volatility.
- While IPO stocks tend to rise on the first day, about 25% decline, and shares at the offering price are typically unavailable to retail investors.
- SpaceX is reportedly planning to offer up to 30% of its shares to retail investors, bucking the trend.
- Long-term investors are advised to tread carefully due to potential volatility, and a 'wait-and-see' approach is suggested by some.
- Diversification is crucial, and experts recommend consulting a financial advisor before making investment decisions.
- Some mutual funds, like Baron Opportunity, already hold significant stakes in SpaceX.