A Lot More SpaceX Shares Are About to Come Onto the Market
Insiders' lock-up agreements will begin to expire in August, allowing more shares to be sold to the public.
Overview
When Space Exploration Technologies (NASDAQ: SPCX), also known as SpaceX, went public on June 12, only about 4.9% of its 13.2 billion shares were put up for sale, an unusually small public float.
But that percentage is set to more than double in August as many owners of pre-IPO shares will be partially released from the standard lock-up agreements.
Details
This week, the space exploration, satellite, and artificial intelligence firm headed by Elon Musk announced that it will deliver its first earnings report as a public company on Aug. 4. As per the rules set out in the company's prospectus, two trading days later, pre-IPO shareholders will be able to sell some 911 million of their locked-up shares, bringing the float to about 12%. Even more shares will be released if the stock trades at 30% above its IPO price on five of the 10 trading days prior to the earnings release.
Source
Originally published at www.fool.com.