Post-IPO lockup expirations could flood markets with shares, pressuring stock after initial $1.75 trillion valuation.
SpaceX will debut at $135 per share Friday, raising $75 billion in the largest IPO ever, valuing the company at $1.75 trillion. Only 4.2% of shares will float initially, with index inclusion expected to support demand in early trading.
The IPO is reportedly four times oversubscribed, but insider lockup expirations begin after Q2 earnings, due late July. Employees and early investors can sell up to 20% of locked shares post-earnings, with additional tranches unlocking through day 180. Elon Musk and other major holders are restricted for one year.
Analysts warn selling pressure could mount as 4,000 employees, including non-executives, gain liquidity. A 30% price rise above IPO levels would trigger further sales, amplifying supply.