SpaceX has formally informed its investors of a five-for-one stock split plan, a move that will lower the per-share price for its upcoming initial public offering (IPO). According to individuals familiar with the matter, the company has notified all shareholders via email that following the split, the fair market value per share will be adjusted from approximately $526.59 to about $105.32. The sources indicated that the stock split process is set to begin the week of May 18 and is expected to be completed by May 22. SpaceX has not yet officially commented on the matter.
Reports from last Friday suggest SpaceX could file its highly anticipated IPO application as early as Wednesday. The stock is expected to attract significant interest from retail investors. Elon Musk has long cultivated the retail investor base through Tesla (TSLA), which executed stock splits in 2020 and August 2022.
Additional reports indicate that the company, which integrates space rockets, satellite operations, and artificial intelligence businesses, plans to commence its official IPO roadshow as soon as June 4. It aims to finalize the offering price on June 11 and list on the Nasdaq exchange on June 12. Regulations require SpaceX to publicly file its prospectus at least 15 days before the roadshow begins. Once the roadshow starts, SpaceX and its underwriters will present the offering to major investors and brokerages to determine the final IPO price before public trading begins.
It is reported that SpaceX has completed the non-public filing process for the offering, targeting a fundraising amount of up to $75 billion, which would value the company at over $2 trillion. If successful, this would set a new record for the largest IPO in global history. However, key details such as the final fundraising total and the exact listing timeline remain subject to potential adjustments.
Comments