Finance

Mark Your Calendars — the SpaceX IPO Should Occur by This Date

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Most investors don’t realize that there are ways to invest in SpaceX right now. Many of these methods, however, are complicated, with extra fees involved and hoops to jump through. The simplest way to invest in SpaceX is likely to just buy shares in the company’s upcoming initial public offering (IPO).

Typically, it’s hard to secure shares of IPO stocks. But that may not be the case with SpaceX. Founder Elon Musk has apparently told his team that he wants a huge chunk of the IPO — perhaps up to 30% — to be allocated to smaller retail investors.

When will the SpaceX IPO actually take place? Thanks to recent regulatory filings and high-volume betting markets, we can make a very educated guess.

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​SpaceX may target a valuation of up to $2 trillion. 

Most investors don’t realize that there are ways to invest in SpaceX right now. Many of these methods, however, are complicated, with extra fees involved and hoops to jump through. The simplest way to invest in SpaceX is likely to just buy shares in the company’s upcoming initial public offering (IPO).

Typically, it’s hard to secure shares of IPO stocks. But that may not be the case with SpaceX. Founder Elon Musk has apparently told his team that he wants a huge chunk of the IPO — perhaps up to 30% — to be allocated to smaller retail investors.

When will the SpaceX IPO actually take place? Thanks to recent regulatory filings and high-volume betting markets, we can make a very educated guess.

People standing on the moon with briefcases.

Image source: Getty Images.

In early April, Reuters reported that SpaceX had filed confidential disclosures with regulators that would soon clear the way for a potential IPO. Sources indicated that SpaceX was targeting a June IPO, though we won’t be sure until an official prospectus is filed, which some anticipate will be made public sometime in May.

We can also look at data from Kalshi, a popular betting market, to see when bettors believe an IPO date will officially be announced. Right now, Kalshi markets indicate a chance of 80% or greater that a SpaceX IPO is made official before July 1. There is just a 12% chance, according to Kalshi data, that an IPO is officially announced before June 1.

I’ve already written about how SpaceX could justify a valuation of $1.75 trillion, or even $2 trillion. But some financial advisors are warning everyday investors against participating in the IPO. “People look at SpaceX and think of the trajectory of Apple, Amazon, and Alphabet and think that SpaceX would have the same one,” one advisor cautions. “But it’s a much more mature company. It would be good to temper one’s expectations about returns over the long term.”

Whether or not SpaceX is a wise investment, however, won’t be known until a full prospectus is made publicly available, with accurate and detailed financial disclosures. But given June is just a handful of weeks away, we could be getting that information at any minute.

 

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