If SpaceX, the U.S. space company seen as this year's biggest global initial public offering (IPO), goes public, founder Elon Musk is expected to receive "supervoting" rights.
Reuters reported on the 22nd that an analysis of the prospectus SpaceX confidentially filed this month shows that, after the listing, supervoting shares will be granted to Musk and a small group of insiders. The company is heading into the IPO using a dual‑class share structure that gives certain shares more voting power than common stock.
According to Reuters, the Class A shares going to retail investors carry one vote per share, while the Class B shares held by Musk and others carry 10 votes per share.
By using a dual‑class voting system, SpaceX would allow Musk to retain control after the IPO and effectively defend management rights.
The prospectus also includes provisions that restrict shareholders when they try to influence the appointment of directors or pursue legal action.
After SpaceX lists, Musk will remain chief executive officer (CEO) and chief technology officer (CTO) and will also serve as chair of the nine‑member board.
The prospectus also disclosed SpaceX's specific financials. As of the end of last year, SpaceX had total assets of $92 billion (about 136 trillion won), liabilities of $50.8 billion, and cash holdings of $24.8 billion. It posted annual revenue of $18.6 billion last year and a loss of $4.9 billion.
SpaceX's listing is expected to be the largest IPO on record. SpaceX plans to raise a total of $75 billion and secure a valuation of $1.75 trillion.