Jefferies Builds Short-Selling Capacity Ahead of SpaceX IPO
By EC Assets · Published
Investment bank Jefferies is developing its short-selling business as the initial public offering (IPO) of SpaceX approaches. Hedge funds that have not invested in SpaceX are contacting Jefferies. They are inquiring about the possibility of shorting SpaceX following its public listing. Jefferies was not among the approximately two dozen firms handling SpaceX's IPO. Despite this, investors are reportedly flocking to the bank for short-selling opportunities. SpaceX’s IPO has sparked interest in short selling among hedge funds. SpaceX plans to sell 555.6 million shares at $135 each. The company targets a fixed IPO roadshow price of $135 per share. One source indicates this valuation is $1.75 trillion. Morningstar, however, states that SpaceX is worth less than half of its $1.75 trillion IPO target. The IPO is expected to raise a record amount of cash. One forecast suggests it could value SpaceX at $2 trillion. The SpaceX IPO is generating significant interest in the space sector. Historically, much capital raised through IPOs is not guaranteed to be used for the company itself. The IPO for SpaceX is expected in the coming days. This article is intended for informational purposes only. It does not constitute investment advice.
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