SpaceX IPO Would Give Musk Super-Voting Control, Reuters Reports

If SpaceX goes public, founder Elon Musk would retain outsized control through so-called super-voting shares. The aerospace company has drawn attention as a potential blockbuster initial public offering this year.

A confidential investor prospectus obtained by Reuters on April 20 shows that Musk and a small group of insiders would receive super-voting stock after the listing.

Class A shares held by ordinary investors would carry one vote apiece. Class B shares held by Musk and other insiders would carry 10 votes each. The dual-class structure would make it easier for Musk to maintain control after an IPO and strengthen the company's defenses against challenges to management.

The filing also includes provisions limiting shareholders' ability to influence director appointments or pursue legal action. After the listing, Musk would remain chief executive officer and chief technology officer. He would also serve as chairman of the nine-member board.

The prospectus also disclosed previously unreported details of SpaceX's finances. As of the end of last year, the company had total assets of $92 billion, liabilities of $50.8 billion and cash holdings of $24.8 billion.

Revenue for the year totaled $18.67 billion. SpaceX posted a loss of $4.94 billion, most of it tied to spending related to artificial intelligence.

Musk received just $54,080 in compensation from SpaceX last year, but an IPO would leave him with a multibillion-dollar windfall. The Information reported that Musk bought about $1.4 billion of SpaceX stock last year. He would receive an additional 60 million shares if SpaceX's market value reaches $6.6 trillion and the company builds a space data center.

A SpaceX listing would be the largest IPO on record. The company has set a goal of raising $75 billion at a valuation of $1.75 trillion.

Park Su-bin, Hankyung.com reporter waterbean@hankyung.com