Episode 200: Today, Ann explores the unorthodox SpaceX IPO on the docket for next week - including Elon Musk’s “take it or leave it” approach to pricing. Then we look at headlines moving the market, including earnings results out of Five Below and Petco and what sent their shares lower. Finally, we answer a listener’s question about the breakup of Honeywell’s industrial conglomerate. Check out: Liquid.Trade/BrewMarkets www.brewmarkets.com Subscribe to the Brew Markets newsletter: https://www.morningbrew.com/brew-mark... Follow Brew Markets on social: Instagram: instagram.com/brewmarkets TikTok: tiktok.com/@brewmarkets X: x.com/brewmarkets Follow Ann Berry on social: Instagram: instagram.com/annberry_nyc X: x.com/AnnBerry_NYC Listen to Brew Markets Here: swap.fm/l/9Qk4z73Z2nEwFiCB4qee Watch Brew Markets Here:⁠ https://www.youtube.com/@BrewMarkets The content shared on this podcast is for informational and entertainment purposes only and should not be considered financial, legal, or investment advice. Brew Markets, Morning Brew and their hosts are not licensed financial advisors. Listeners should conduct their own research and consult with qualified professionals before making any financial decisions or investments. The views expressed are those of the hosts and guests and do not necessarily reflect the views of Morning Brew or its affiliates. This podcast may include paid endorsements or sponsorships Learn more about your ad choices. Visit megaphone.fm/adchoices

SpaceX’s Unorthodox IPO & The Honeywell Spinoffs

Brew Markets

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**Podcast:** Brew Markets

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Honeywell, spinning off its jet sensors from its home thermostats. We answer one listener's question about the breakup of an industrial giant. A viral squishy dumpling and cats. Yes, we survey what's driving revenue from Five Below to Petco. And the SpaceX IPO, possibly the largest public offering in history and certainly an unconventional one with new details about next week's anticipated launch and how it's going to shake up the markets.

For Thursday, June 4th, it's Brew Markets Daily and I'm Ann Berry. Full market details to come. But first, SpaceX moving closer to what could become not only the largest initial public offering in history, but also one of the most unorthodox. That's as the company plans to begin its investor roadshow this week to drum up demand, if drumming's

needed, for its expected $75 billion IPO, more than double the size of Saudi Aramco's record so far. And at a possible $1.75 trillion headline number, instantly placing SpaceX among the most valuable publicly traded companies in the world. Well, shares are expected to start trading on the NASDAQ as soon as June 12th under the ticker symbol SPCX. And unlike most IPOs, which keep pricing

flexible until the very last days of launch, SpaceX has already publicly identified a $135 per share target. It's an unusual move that underscores the company's confidence in investor demand. Because basically, founder Elon Musk is setting a take it or leave it number, rather than negotiating that opening price down if investor demand softens, equally though giving up

upside if demand comes in hotter. Well, another note is that the offering is structured as an all primary share sale, which is a fancy way of saying that the money raised will go directly into the coffers of SpaceX to fund its expansion plans instead of the existing shareholders cashing out right away. Well, if it sounds like Musk is calling the shots to the market, it's because in this case, he actually is. That's after learning a painful lesson with Tesla that he does not enjoy having limited technical

voting power. This time with SpaceX, Musk will retain extraordinary control with more than 80% of the company's voting power. And in what will be definitely a crowd pleaser, as by one of retail investors' favorite founders, some reports indicate that as much as 30% of the SpaceX offering could be allocated to individuals, which is far above the typical levels you see in major IPOs when institutions

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SpaceX’s Unorthodox IPO & The Honeywell Spinoffs

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

SpaceX’s Unorthodox IPO & The Honeywell Spinoffs

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.