SpaceX IPO

Altior

https://forums.moneysavingexpert.com/discussion/comment/82033154#Comment_82033154

The poster stated they wanted in for £50K, so no, won't be a millionaire from the trade! My understanding is that it was vastly oversubscribed, and retail investors didn't get allocated what they asked for. I'm interested in how it 'ended' for the OP.

Altior

https://forums.moneysavingexpert.com/discussion/comment/82033155#Comment_82033155

There's a long backstory with RM, and most commentators at the time thought the offer was ridiculously low. But the government selling public assets in a privatisation generally is not really analogous to the largest private IPO ever. The state can't afford for it not to 'fill', and do need to make it a prospect for the public to buy in.

subjecttocontract

I applied through HL.

Allocations were capped at 1000 shares. If you applied for more than 20 shares you were allocated 21.13% of your excess application up to the maximum of 1000 shares.

Therefore I reckon an application for £50,000 worth of shares would result in around 120 shares at around £12000 at the offer price of $135 (£100.65).

kempiejon

https://forums.moneysavingexpert.com/discussion/comment/82033171#Comment_82033171

I suggested this was not unique and dimly remembered the royal mail floatation and a big gain on the ifrst day had happened and it appears it happed to a large US IPO Visa (V) at one point 50% up closed at 28% on first day trading, at that time one of the largest issues. IPOs priced to sell and excitement in the market not a surprise.

Reaper

A purely personal opinion here but I think the successful SpaceX IPO will turn out to be a turning point.

It tells ChatGPT and Anthropic that now is the perfect time for big IPOs and I would not be surprised if SpaceX comes back for a second round having tested the water.

The market will wobble as there is not enough free cash to support all three, at which point investors will remember they are all hugely loss making and scramble to get out before everyone else catches on. Cue the AI bubble bursting and a huge crash.

That's my prediction and you can dig it out in a few months time if I am wrong and have a good laugh, but I don't think you will.

Altior

https://forums.moneysavingexpert.com/discussion/comment/82033482#Comment_82033482

I'm not saying that's wrong, but RM is not a realistic comparator. IPOs are not a one way bet for subbers. Virtually everyone here was putting the OP off, but they would have turned a very healthy profit if they went ahead. Obviously it's very easy to say it was always going to have a massive gain on day 1, after it had a massive gain on day 1!

I personally think it's bananas, but I've had that position on US valuations pretty much since the vaccine/ end of lockdowns bounce. Whilst I was very confident that it was going to fly, I couldn't countenance investing in it myself.

subjecttocontract

120 shares bought at IPO/$135 = $16200 (£12000).

20% premium on day one of trading = paper profit of £2400

talexuser

So it's priced at around 100 times 2025 earnings, each share held by Musk has 10 times the voting power of any share held by the public, so a board is effectively a pantomime. Why has the Nasdaq changed its rules to a new "fast entry" just for this launch to make index funds have to buy SpaceX much earlier than would have been the case when they had a "cooling off" period for shares to reach a fair value? How come major investors have a one year sale restriction, but 5% of shares are for select SpaceX insiders who have a special clause to sell up early and avoid any standard lock-up provisions?

https://www.reuters.com/legal/government/spacex-sets-aside-5-ipo-shares-selected-buyers-waives-lock-up-2026-06-01/

Rollinghome

I like the much repeated remark by CNBC’s Jim Cramer that Musk is more Barnum than Buffet.

But Musk still has a lot of that stuff to unload so the last thing he would want would be an overhang, and consequently it had to be priced to go. I ordered £12k, £6k each for Mrs R and myself in our SIPPs on the assumption that I’d only be given much more than that if there wasn’t the demand I expected. Got just under £3k each and sold both holdings asap yesterday. It wasn’t something I would want to be stuck with.

Where it could go from here, I haven’t a clue. People buy all sorts of stuff nowadays that has little practical value, think $Trump, and it could be an interesting journey, but reality tends to catch up eventually, whatever that realty is. AFAIR there are 8 unlock dates running up to December then another for Musk in June 27.

Altior

That's some cracking aftertiming !

They both begin with B, but neither of them are analogous to Musk in my view.