Recently, it has come to light that SpaceX is exploring the possibility of an IPO in 2026. If an IPO goes ahead, it’s likely to be one of the biggest in history – according to Bloomberg it could value the company at up to $1.5 trillion.
Wondering how to buy shares in the SpaceX IPO? Here are some strategies to consider.
Who is SpaceX?
SpaceX is Elon Musk’s space company. Officially known as Space Exploration Technologies Corp, it was founded in 2002 by the entrepreneur with the primary goal of making human life multiplanetary by enabling colonisation of Mars.
SpaceX is known for pioneering reusable rockets – specifically the Falcon 9 and the Falcon Heavy – which can land their first stages back on Earth after launch to be reflown. This reusability is key to lowering the cost of access to space.
It’s also famous for its Starlink service. This provides high-speed broadband internet access globally, including in remote areas.
In terms of ownership, Elon Musk is the largest individual shareholder in the company, reportedly owning about 40% of the business. Other investors include Alphabet, Fidelity Investments, Baillie Gifford, Founders Fund, Andreessen Horowitz, and Sequoia Capital.
Gaining exposure to SpaceX before the IPO
For regular retail investors, it’s likely to be hard (probably impossible) to directly buy SpaceX shares before the IPO. While IPO shares are sometimes offered to the general public, that’s unlikely to be the case here. However, this doesn’t mean there aren’t ways to gain exposure to the space company. Today, there are several ways to gain indirect exposure to the company.
One way to obtain indirect exposure to SpaceX shares is via investment trusts managed by Scottish investment firm Baillie Gifford. This company has been invested in SpaceX for many years now and several of its trusts now have large weightings to SpaceX.
One example here is the popular Scottish Mortgage Investment Trust (LON:SMT). At the end of November, SpaceX was 8.2% of its portfolio. Another example is the Edinburgh Worldwide Investment Trust (LON:EWI). At the end of October, SpaceX was 8.4% of the portfolio here. The Baillie Gifford US Growth Trust (LON:USA) and the Schiehallion Fund (LON:MNTN) are two other trusts that offer access to the space company. At the end of November, SpaceX represented 6.0% and 7.5% of their holdings respectively.
Another company that has made a large investment in SpaceX in the past is Google owner Alphabet. It invested around $900 million in the space company back in 2015. This investment resulted in an estimated ownership stake of 7% to 8% of the company at the time. So, based on recent reports that SpaceX is targeting an IPO valuation of around $1.5 trillion, the value of Alphabet’s holding could be over $100 billion.
Pre-IPO platforms for advanced investors
It’s worth pointing out that there are several FinTech platforms that offer access to private companies such as SpaceX. Examples here include Forge Global and Hiive. However, to use these platforms, you typically need to be an institutional or qualified high-net-worth investor. In other words, they are not available to the general public.
Buying SpaceX shares after the IPO
Once the SpaceX IPO takes place, it will be much easier for UK investors to buy shares in the company. You’ll be able to do this via an investment platform such as Hargreaves Lansdown, Interactive Brokers, or IG.
If you’re interested in buying shares, you’ll want to invest through a reputable platform that is regulated, offers access to US shares, and has reasonable fees. You can find more information on the best investment platforms right here at Good Money Guide.
Based in London, Edward is a distinguished investment writer with an extensive client portfolio comprising a diverse array of prominent financial services firms across the globe. With over 15 years of hands-on experience in private wealth management and institutional asset management, both in the UK and Australia, he possesses a profound understanding of the finance industry.
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