Antony Slumbers retweetledi
The SpaceX IPO is the most brazen retail fleecing in modern market history.
NASDAQ has REWRITTEN the index rules specifically for this listing. The 10% minimum free float requirement: gone. The 3 to 12 month seasoning period before index inclusion: cut to 15 trading days. Companies with small floats can now be weighted at 3x their actual float.
Translation: every passive index fund, every 401k, every pension is about to be force-fed SPCX whether they want it or not.
And what exactly are they buying?
Class A shares carrying ONE vote each, while Musk holds 93.6% of the Class B super voting shares at TEN votes each. That gives him 85.1% of voting power on a 42% economic interest. He cannot be outvoted. He cannot be removed. CEO, CTO and board chairman simultaneously.
For reference: Zuckerberg controls 61% of Meta. Buffett 35% of Berkshire. Musk: 85.1%.
SpaceX is also claiming "controlled company" status, exempting it from needing a majority of independent directors. Shareholders waive the right to a jury trial. They waive the right to class actions. Mandatory arbitration only, courtesy of an SEC rule change pushed through on a party line vote last September.
$1.75 trillion valuation. $80 billion raise. Largest IPO in history.
The rules of the game were quietly rewritten so one man could extract maximum capital from retail while answering to no one.
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