The SpaceX IPO Is Coming. Here's Everything You Need To Know About IPO Risks and Rewards
4/22/202617 min
The SpaceX IPO will likely be the largest public offering in history... But before you get excited, Nicole breaks down how the IPO machine actually works, and why some of the smartest people in finance say the system is rigged against you. Nicole walks through the full IPO process step by step: what underwriters actually do (and what they charge for it), how the roadshow and book-building work, and why the price you'll pay on IPO day is not the price institutional investors paid. She also covers what SpaceX employees need to know right now about their equity, stock options, RSUs, lockup periods, and the tax surprises that can blindside you before you sell a single share. Then, Nicole shares the framework she uses to evaluate any IPO, including the two sections of the S-1 prospectus most retail investors skip, and explains how you can get in on SpaceX before the IPO. Check out Nicole’s financial literacy course The Money School Find a Financial Advisor or Financial Coach from Nicole’s company Private Wealth Collective Watch video clips from the pod on Money Rehab’s Instagram and Nicole Lapin’s Instagram Here's what Nicole covers today: 00:00 Are You Ready for Some Money Rehab? 00:04 The SpaceX IPO: Just How Historic Is It? 01:08 How the IPO Process Actually Works 02:12 What Underwriters Do (and What They Cost) 03:04 The Roadshow and How IPO Pricing Works 03:45 NYSE vs. NASDAQ: Where Will SpaceX List? 04:25 Why Companies Go Public 05:14 What SpaceX Employees Need to Know About Their Equity 06:00 Lockup Periods Explained 07:06 Three Things Every Employee Must Do Before an IPO 08:06 Is the IPO System Rigged? Bill Gurley's Argument 10:00 The Figma Example: How Retail Investors Got Burned 11:19 How to Evaluate Any IPO Before You Invest 13:27 Watch the Lockup Expiration Date 14:09 Tip You Can Take Straight to the Bank All investing involves the risk of loss, including loss of principal. This podcast is for informational purposes only and does not constitute financial, investment, or legal advice. Always do your own research and consult a licensed financial advisor before making any financial decisions or investments.
Transcript preview
First 90 secondsNicole Lapin· Host0:00
[electronic music] I'm Nicole Lapin, the only financial expert you don't need a dictionary to understand. It's time for some Money Rehab. Money Rehab. The biggest IPO in history is coming, and this is not a drill. Elon Musk's rocket company has filed with the SEC, the roadshow is reportedly launching the week of June 8th, and the company is targeting a valuation of up to $1.75 trillion, aiming to raise $75 billion in a single public offering. So exactly how historic is this? Well, right now, the record holder is Alibaba, which raised $22 billion in 2014. So if SpaceX goes as planned, that would be three X larger. Some analysts are projecting that the scale of this single deal could exceed the total proceeds of every US IPO in 2024 and 2025 combined. SpaceX CFO Bret Johnsen has reportedly told the team of banks working on this deal that retail investors like you and me will be a bigger part of this IPO than any other in history. Elon himself wants to reserve up to 30% of the offering for retail. The industry norm is five to 10%. Whether that's genuine appreciation for his supporters or a brilliant marketing move is conversation for another day, but the fact that you're even being invited to the table is a really big