SpaceX (NASDAQ:SPCX) has provided additional details about its anticipated initial public offering, revealing plans to reserve a portion of shares for employees and individuals connected to senior management through a special directed share program.
The latest disclosure was included in an amended prospectus filed on Monday as the aerospace company continues preparations for one of the most closely watched stock market debuts in history.
Up to 5% of IPO Shares Reserved for Special Program
According to the updated filing, SpaceX intends to allocate up to 5% of the shares offered in the IPO to selected employees as well as friends and family members of executive officers.
The company had previously disclosed the existence of the directed share program but has now specified the size of the allocation for the first time.
Directed share programs are commonly used in public offerings to give company insiders and close associates an opportunity to participate in the transaction before shares begin trading publicly.
Participants Exempt from Lock-Up Restrictions
SpaceX also reiterated that participants included on its so-called friends and family list will not be subject to traditional lock-up requirements.
Typically, investors receiving shares through IPO allocation programs are restricted from selling their holdings for a defined period after the offering.
The exemption could provide greater flexibility for certain participants compared with other shareholders.
Majority of Existing Shares Remain Locked Up
Despite the exemption for directed share program participants, SpaceX indicated that more than 60% of shares outstanding prior to the IPO will remain subject to an extended lock-up period.
The restriction will apply to a substantial portion of existing shareholders, including shares owned by Chief Executive Officer Elon Musk.
The company said the measure is intended to support an orderly transition to public-market ownership following the offering.
Valuation Target Continues to Climb
Media reports have indicated that SpaceX is targeting a valuation of at least $1.8 trillion in the proposed IPO, which would rank among the largest public market debuts ever completed.
Bloomberg previously reported in April that the company was exploring a valuation exceeding $2 trillion.
If achieved, such a valuation would place SpaceX among the world’s most valuable publicly traded companies.
New Space Force Contract Adds Momentum
The latest IPO disclosure follows another significant milestone for the company.
On Friday, the U.S. Space Force announced the award of a $4.16 billion contract to SpaceX for work related to a next-generation space-based tracking network.
