After SpaceX's IPO, CEO Elon Musk Will Control 82.4% of the Company's Voting Power. Is That Good for Investors?
Elon Musk will have unassailable control over SpaceX's future.
After SpaceX's IPO, CEO Elon Musk Will Control 82.4% of the Company's Voting Power. Is That Good for Investors?
Overview
SpaceX's June 12 initial public offering (IPO) will be one for the history books. The company is set to sell 555,555,555 shares at a price of $135 per share in an offering that will raise $75 billion and value the company at approximately $1.77 trillion. In terms of market capitalization, the SpaceX IPO is poised to shatter records and make the space-tech specialist by far the largest public market debut in history.
But while SpaceX will sell a substantial tranche of shares on the public market, it's clear that CEO Elon Musk will retain a virtually unassailable position in the company's voting rights. Even with the stock sale, Musk is poised to control roughly 82.4% of the company's total voting rights through his ownership position in the space stock. Is this a positive or a negative for investors?
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Originally published at www.fool.com.
