CNBC: IPOX® CEO Josef Schuster Comments on SpaceX's Potential IPO for IPO Guide

CNBC recently published a guide detailing what investors need to know ahead of SpaceX's highly anticipated initial public offering. Elon Musk’s aerospace company has reportedly filed confidentially with the SEC, potentially seeking a staggering $1.75 trillion valuation. If the firm raises the rumored $75 billion, it would easily surpass Alibaba's 2014 debut to become the largest U.S. public offering of all time. The article outlines key considerations for retail investors hoping to gain early exposure, examining the mechanics of IPOs and emphasizing the importance of evaluating a company's float, sales track record, and the role the stock will play in a broader portfolio.

IPOX® Founder Josef Schuster was featured in the article, providing commentary on the historical performance of new listings and the specific risks surrounding SpaceX's rumored structure. Schuster advised a cautious, long-term approach, warning that the company's expected low public float of around 5% could lead to ongoing volatility and outsized risk for early investors.

“We’ve always taken a wait-and-see approach to that market,” Schuster noted regarding the immediate aftermath of a public offering. Highlighting the dangers of a low share float, he added, “Anything below 7%, you have to be really careful.”

Addressing the timing of market entry, Schuster advised patience over chasing first-day pops:

“I think investors really need to be careful of jumping in at this point. However, down the road, once it starts trading, I think, let it trade and see. The entry points to IPOs have been, in many cases, much lower than the first trading day. [Some companies] haven’t been winners when we bought them on the first day or at the first close, but they’ve become winners over time.”

Read the full article by Ryan Ermey on CNBC: SpaceX’s IPO could be the largest-ever public offering—what to know before investing, from experts