SpaceX sets aside up to 5% of shares in IPO for certain employees and friends

In a significant move, SpaceX has earmarked up to 5% of its IPO shares for a select group of employees and associates, as revealed in a recent regulatory filing. This initiative is part of the company's strategy to ensure that those closely linked to the firm can participate in its anticipated public offering, which is projected to reach a staggering valuation of $75 billion. Earlier this year, CEO Elon Musk valuated SpaceX at an impressive $1.25 trillion, particularly following its merger with xAI, his artificial intelligence venture. Only a handful of tech giants, including Facebook and Alibaba, have surpassed $100 billion in market cap after their initial trading days on U.S. exchanges. The direct share program allows SpaceX to allocate a portion of its IPO to employees, clients, and personal contacts, offering them a unique opportunity to benefit financially. The selection of participants will be determined at the discretion of the company's executive team, and notably, these shares will not be subject to lock-up periods. This practice is not uncommon among tech firms; similar offerings have been implemented by companies like Airbnb, Uber, and Rivian. When Tesla went public in 2010, Musk's electric vehicle company also set aside a portion of its shares for employees and close associates. As SpaceX prepares for its IPO roadshow, which could kick off this week, it is poised to make its debut on the Nasdaq, potentially as early as June 12. Leading the underwriting process is Goldman Sachs, with Morgan Stanley also playing a key role, particularly in managing the direct share program.