Space X to allow British investors to buy into blockbuster IPO
British investors will be able to buy into Space X’s mega IPO, as the space technology company looks to strip back listing rules as it prepares to go public later this month.
The company is anticipated to price its blockbuster initial public offering on the Nasdaq later this month, with the company targeting a valuation between $1.7 trillion and $2 trillion.
Elon Musk’s company filed as registration to list on the Nasdaq under the ticker SPCX in May, triggering the IPO process, with the listing expected to raise $75bn in capital.
Typically, under US listing rules, IPOs are off-limits to international retail investors, but Space X is planning a UK retail offer, which would give Brits access to the listing if it does go ahead.
Marex’s role
Marex Financial, which owns Winterflood, will act as the public offer platform operator, meaning it will perform as a ‘middleman’, allowing UK investment platforms and brokers access to the IPO, with individual investors able to buy shares through these platforms.
Marex will use a secure backend system, dubbed the WRAP platform to collect money and share orders and brokers will then set a deadline for applications for the IPO, with it purchasing all clients’ buy requests and uploading it to Marex’s system to secure the shares.
Platforms which are allowing investors to participate include AJ Bell, Hargreaves Lansdown, Interactive Investor and Etoro.
Investment trusts
UK investment trusts have already reaped the benefits of getting in early to Space X as a private company.
In particular, Scottish Mortgage Trust confirmed the rocket maker now accounts for roughly a fifth of its £16bn fund, according to its latest result.
Meanwhile, Bailie Gifford is expected to return £3.5bn from its bet on Space X across its four flagship funds, with the trust first backing the firm in 2018.
The latest IPO update from the company also follows AI firm Anthropic revealing that it plans to go public in the US.
The firm behind chatbot Claude confirmed on Monday that it had filed paperwork to make an IPO, with the price and number of shares to be offered not yet set.
Competitor Open AI is also reportedly considering going public this year.