EWIT considers tender offer to cash in on SpaceX – Daily Business

Elon Musk: set to become a trillionaire

Edinburgh Worldwide Investment Trust, now under effective control of a New York hedge fund, is considering a tender offer for its shareholders to cash in on the forthcoming IPO of Elon Musk’s SpaceX.

The board said it remains committed to providing shareholders with a “liquidity opportunity” and intends to pursue a tender offer as soon as reasonably practicable following a SpaceX IPO on Nasdaq expected this month.

It has engaged with a number of shareholders regarding the implementation and sequencing of the board’s priorities and initiatives.

The programme is focused on the execution of the mandate arising from the recent AGM and the future direction of the company.

SpaceX has said it is even more valuable than anticipated as it approaches a public stock listing set for next week.

Analysts at Morningstar had questioned the valuartion and suggested it was probably worth half the $1.75trn that it seems destined to achieve.

In a filing with the US Securities and Exchange Commission detailing its plans for the IPO, SpaceX said its shares should go for $135 (£100) each.

Setting an estimated price for its stock listing so far in advance is a rare move, and the amount represents a large increase in SpaceX’s previous valuation of $1.25tn earlier this year.

SpaceX, which builds rockets and owns the Starlink satellite system, is expected to start trading on the Nasdaq stock index on 12 June. The company is aiming to raise $75bn, the most ever for an IPO.

Should the company’s shares sell at or above the expected $135 price, it will immediately become one of the most valuable companies in the world. Musk, who controls more than 80% of SpaceX with his own stock holdings in the firm, would become a trillionaire.

According to data from Dealogic, which conducts research on the capital markets, almost half of companies that have gone public in the last 30 years have seen their value decrease compared to when they listed.

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