Key insights
- The article highlights a significant discrepancy in share pricing for the SpaceX IPO, with existing investors acquiring shares at a much lower average price ($6.48) than new investors ($135). This suggests potential dilution concerns for new public investors. The author speculates that market participants may be holding back capital in anticipation of high-valued IPOs like SpaceX and the upcoming Anthropic IPO, potentially leading to a temporary 'recede in the money tide' for the broader market.
One thing I haven't seen a lot of talk on is Page 71, 'Dilutions' in the SpaceX Prospectus. When I first read that less than 5% of shares were open to the public ( joe shmoe trader), i was confused at why people were saying new investors would be left holding the bag.
That was until i saw the Average price per share of the old investers vs new.
|(in millions, rounded to two decimals)|Number (shares acquired)|Percent (shares acquired)|Amount (Total consideration)|Percent (Total conisderation)|Avg Price per Share| |:-|:-|:-|:-|:-|:-| |Elon Musk and other existing investors|12,520.31|95.8%|$81,137.52|52%|$6.48| |New investors in this offering.|555.56|4.2%|$75,000.00|48%|$135| |Total|13,075.87|100%|$156,137.52|100%|$11.94|
As someone fairly new to this, how normal is this share price discrepancy?
All signs are pointing to 'wait n see', especially with Anthropic IPO coming up in a few months. And honestly, there's only but so much money in the market that i feel this slight recede in the money tide is because people are gearing up for this stupidly high valued IPO's.
Thoughts on this?