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2026-06-13 07:08:35
SpaceX, preparing for a record-breaking initial public offering (IPO), has secured an already extremely low underwriting fee rate, and has also obtained an even more favorable term from its investment banking partners: if the underwriters exercise the so-called "greenshoe" option, issuing an additional 15% of shares, the Elon Musk-led company, which integrates rocket development, satellite operation, and artificial intelligence, will not have to pay any underwriting fees for this additional allocation. This extremely rare arrangement means that banks participating in the offering, such as Goldman Sachs and Morgan Stanley, will miss out on an additional $75 million in fees from this transaction. The greenshoe option granted to the underwriters by SpaceX corresponds to an additional $11.25 billion in shares that can be issued, an amount exceeding the overall fundraising scale of most IPOs. The fact that the banking team agreed to waive all fees for this part of the work has made this clause even more noteworthy in the industry. It is understood that underwriters have 30 days to decide whether to exercise their greenshoe option. Representatives from Morgan Stanley and Goldman Sachs declined to comment on the details. Previously, Musk's commercial space giant had agreed with the underwriting team that the underwriting fee for the underlying $75 billion IPO would be $500 million, a rate of only about 0.67%. Even though the rate is far below industry norms, this underwriting fee is still one of the highest total underwriting fees ever paid for an IPO on Wall Street.
