<\/p>\n
Elon Musk is heading the biggest IPO in history<\/p>\n
Scottish institutions holding big stakes in Elon Musk\u2019s rocket company SpaceX have been warned that it could be worth far less than its $1.8 trillion valuation.<\/p>\n
The conglomerate is targeting the biggest stock market flotation in history but analysts at independent research group Morningstar have valued SpaceX at $780 billion.<\/p>\n
Such a sobering assessment will puncture some of the hype surrounding the much-anticipated IPO. <\/p>\n
Two prominent investors are Edinburgh-based Scottish Mortgage Investment Trust and Edinburgh Worldwide Investment Trust, both managed by Baillie Gifford.<\/p>\n
EWIT\u2019s lucrative holding was a factor in US hedge funds Saba Capital Management\u2019s pursuit of the trust in which in now has effective control.<\/p>\n
The roadshow for the SpacX share sale is expected to begin on Thursday.\u00a0<\/p>\n
Private investors in the UK will be able to buy shares through a retail offer handled by Winterflood, the City of London market maker, which said it would run a system that would coordinate orders made through platforms including Hargreaves Lansdown, AJ Bell, Revolut and Aberdeen Group\u2019s Interactive Investor.\u00a0<\/p>\n
It is expected that the shares will begin trading on 12 June, with SpaceX aiming to raise about $75 billion.<\/p>\n
Aside from its rocket business and the\u00a0Starlink satellite communications network, the company is heavily into AI and datacentres.<\/p>\n
However, it is partly because some of its ambitions are unproven that Morningstar\u2019s analysts have downgraded its valuation of SpaceX.<\/p>\n
\u201cWe think the company has been significantly overvalued and investors will have opportunities to buy the stock at more attractive levels after the IPO,\u201d they say in a note.<\/p>\n
It is reported that 23 banks are working on the listing, including Goldman Sachs and Morgan Stanley. According to Bloomberg even a squeezed fee of 0.75%, will still result in a payout of about $500 million for the those involved.<\/p>\n
In its prospectus, SpaceX reported revenue of $4.7 billion but a net loss of $4.3 billion for the first three months of the year.<\/p>\n
\t #SpaceX #hugely #overvalued #analysts #Daily #Business<\/p>\n","protected":false},"excerpt":{"rendered":"
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