'Catastrophic Governance Structure' and Murky Financials Complicate SpaceX IPO

Elon Musk will soon sell shares of SpaceX to the public. With weeks left until what could be the biggest IPO to ever hit the market, investors are getting a bit worried. A Danish pension fund, Akademikerpension, decided on Friday to place SpaceX on its black list, barring all of its fund managers from purchasing SpaceX shares and deeming the company too risky for investment. The fund believes that SpaceX’s valuation is “pure fantasy” and its governance structure is “extremely poor,” according to a statement shared with Gizmodo. According to the latest reports, SpaceX is targeting a valuation of at least $1.8 trillion when it goes public in June, down from earlier reports that put the company’s goal above $2 trillion. The valuation is based on financial details SpaceX disclosed in its Form S-1 filing with the SEC, but the pension fund argues that the figure is wildly inflated. The current market hype might drive the stock high in the short term, the fund says, but pricing “appears to be driven more by Elon Musk’s narratives than by economic realities,” and it is not hopeful about the company’s long-term prospects. SpaceX’s financials are complicated thanks to its latest merger. Spac