AkademikerPension manages about $25 billion for academic professionals and will not participate in SpaceX’s IPO or any secondary-market share purchases. The fund’s chief investment officer says SpaceX is grossly overvalued and cites a catastrophic governance structure as the primary reason for exclusion. The fund estimates SpaceX cannot reasonably exceed a $1 trillion valuation, about half of the $1.8 trillion target being marketed ahead of a potential IPO as early as 4 June, with pricing possibly on 11 June. The fund also avoids indexed equity products that include SpaceX, excluding the stock from its broader portfolio. The governance concern centers on Elon Musk’s dominant voting power through dual-class shares, his multiple executive roles, and board control, which limits public shareholder influence and may allow controlled-company exemptions from independent director requirements.
"AkademikerPension, which manages roughly $25 billion for academic professionals, has said it will not participate in SpaceX's initial public offering or buy shares in any secondary-market transaction. Chief investment officer Anders Schelde called the company " grossly overvalued" and cited what he described as a " catastrophic governance structure " as the primary reason for the exclusion. The fund calculates that SpaceX cannot reasonably exceed a valuation of $1 trillion, roughly half the $1.8 trillion the company is targeting when marketing begins as soon as 4 June."
"Schelde's objection centres on Elon Musk's control over SpaceX. The company's S-1 filing revealed that Musk holds roughly 85% of voting power through a dual-class share structure in which Class B shares carry ten votes each compared with one vote for the Class A shares being offered to the public. Musk simultaneously serves as chief executive, chief technology officer, and board chair. That concentration of control means public shareholders will have no practical ability to influence company decisions."
"Musk can appoint a majority of the board and cannot be removed as CEO without his own consent. SpaceX will claim controlled-company status after listing, which exempts it from Nasdaq rules requiring a majority of independent directors. Schelde described the arrangement as " exceptionally poor performance on governance matters" and said investors are being asked to accept an " unprecedentedly low risk premium " for a company with this level of management entrenchment."
"AkademikerPension will also avoid indexed equity products that include SpaceX, meaning it is not simply skipping the IPO but actively excluding the stock from its entire portfolio. Pricing could come as early as 11 June. SpaceX is targeting a valuation of $1.8 trillion when marketing begins as soon as 4 June, while the fund estimates a reasonable ceiling of $1 trillion."
Read at TNW | Business
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