UK investors set for $2bn of SpaceX shares: Lowdown on $1.75trillion float expected as
British investors are being offered the chance to buy SpaceX shares in what looks set to be the world’s largest stock market float.
Individuals keen to back the record-breaking $1.75 trillion (£1.3 trillion) listing of Elon Musk’s rocket company in New York will learn tomorrow how they can apply to take part in the offering.
The initial public offering (IPO) is expected to make Musk the world’s first trillionaire.
But it also offers UK retail investors a chance to take part in an IPO in the US.
Typically, those on this side of the Atlantic have had to wait until shares have started trading before being able to buy stock.
But Musk has been clear he wants 30 per cent of shares set aside for private investors in the float itself – including those in the UK.
Ready for launch: Individuals keen to back the record-breaking $1.75 trillion listing of SpaceX in New York will learn tomorrow how they can apply to take part in the offering
SpaceX will be seeking to raise a total of about $75billion (£55billion) from the sale, with some $2billion (£1.5billion) of the shares set to be sold through UK platforms AJ Bell, Hargreaves Lansdown and Interactive Investor.
The UK part of the offer is being co-ordinated by broker Winterflood Securities.
The investor roadshow for SpaceX begins tomorrow when banks pitch the business to potential shareholders.
The company is scheduled to list on the Nasdaq exchange on June 12, becoming the sixth-largest US-listed corporation. Private investors will be hoping for big gains.
But whatever happens to the shares when trading begins, Wall Street will benefit from a fees bonanza.
It emerged yesterday that SpaceX is negotiating to pay less than 0.75 per cent on its supersized IPO – but this will still land advisers, led by banks Goldman Sachs and Morgan Stanley, some $500million (£370million).
A spokesman for Winterflood owner Marex Group confirmed yesterday that the former is the so-called POP – or public offer platform – operator, which handles the sale of shares to retail investors in the IPO.
Wealth: The initial public offering is expected to make Elon Musk, pictured, the world’s first trillionaire
But it declined to comment on any other aspect of the flotation.
Under the rules of the US financial regulator, the Securities and Exchange Commission, strict secrecy governs all such details until the formal marketing process begins.
Yesterday, the investor platforms gave a few more details on the application procedure for those registering, but they also added warnings about the risks involved.
For example, anyone applying for a slice of SpaceX will not know the exact purchase price for the shares. This information will be revealed on June 11.
Some British investors have a stake in SpaceX if they have savings in Baillie Gifford funds such as Scottish Mortgage.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Freetrade
Freetrade
Investing Isa now free on basic plan
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.