# SpaceX's Historic IPO: Is It Worth Investing? - Expert Assessments

On June 12 of the current year, SpaceX, a giant in the space industry, is scheduled to conduct its initial public offering (IPO), which could bring the company's market valuation to an unprecedented mark of $1.8 trillion. The company's shares will be listed on the Nasdaq stock exchange under the ticker symbol SPCX. According to the plan, 555.6 million shares will be sold at $135 each, which will raise approximately $75 billion in capital for the company's budget. Additionally, investors have the right to purchase an additional 83.33 million shares at the same price, which would generate another $11.2 billion; however, this will only occur if the market price exceeds the initial IPO price.

According to current data, Elon Musk himself owns approximately 85% of SpaceX's shares, with the remaining portion distributed among company employees and venture capitalists. Despite the fact that direct access is closed to outside investors, alternative ways to invest in shares before the IPO still exist. For this purpose, one can use such trading funds as ARK Venture Fund (ARKVX) and ERShares Private-Public Crossover ETF (XOVR). However, from a financial analysis perspective, these alternatives have significant drawbacks. In the portfolios of these funds, SpaceX's share is only 11% and 20% respectively, which means that an investor's direct exposure to the company is reduced by 80-90%. Furthermore, both funds are characterized by high fees: the expense ratio of ARK Venture Fund is approximately 3%, while ERShares' is 0.75%, which is quite expensive compared to market-standard ETFs.

For this very reason, the vast majority of experts urge investors to exercise patience. According to recommendations from Morningstar analysts, for long-term investors, it is better to defer the purchase of shares to the period following the public offering. It is expected that after the high volatility of initial prices, more attractive conditions will develop in the market and a higher margin of safety in investing, which would significantly reduce financial risks.

Source: Yahoo Finance