Musk will make SpaceX shares five times cheaper before IPO. How much will they be worth?

Elon Musk's aerospace company SpaceX has decided to carry out a five-to-one stock split (split) to reduce the price of the securities before going public. This decision will make the shares more accessible to retail investors - the audience that Musk has long been trying to attract through Tesla. In parallel, it became known that the world's largest investment company BlackRock wants to invest billions of dollars in the IPO SpaceX.

In an official letter to shareholders, SpaceX management said it has already recalculated the fair market value of one security: taking into account the split, it has been reduced from $526.59 to $105.32, Bloomberg writes, citing sources. According to them, technically the split process should take place this week. Musk-controlled electric car maker Tesla has already conducted similar procedures in August 2022, as well as in 2020.

BlackRock is preparing to buy $5 billion to $10 billion worth of SpaceX stock, sources told The Information. BlackRock declined to comment, and SpaceX ignored the journalist's request.

According to the WhaleWisdom service, Tesla was the eighth largest BlackRock position in public company stocks in the top 10 by the beginning of this quarter, behind six other "Magnificent Seven" tech giants and Broadcom.

According to Bloomberg, SpaceX plans to release the prospectus for its IPO on Wednesday, Ma. 19. The company has accelerated its entry into the public market: a series of investor presentations (road shows) will start on June 4, determination of the offering price is scheduled for June 11, and the start of trading on Nasdaq is scheduled for June 12 - the day of the "mini-parade of planets" of Mercury, Venus and Jupiter. Musk also could have tied the company's stock exchange debut to his 55th birthday on June 28. But the quick completion of the regulator's review allowed the listing to be pushed back, Reuters found out.

SpaceX expects to attract during the placement of up to $75 billion, which will make its IPO the largest in history. At the same time, estimates of the value of the business vary: Bloomberg's interlocutors talk about a bar above $2 trillion, while Reuters calls the target capitalization of about $1.75 trillion. According to the latter, the company will reserve for retail investors an unprecedentedly large share of shares - more than "in any other IPO" - as a sign of gratitude to people who have supported SpaceX and Elon Musk personally for years.

This article was AI-translated and verified by a human editor