SpaceX IPO breaks records, but analysts say it's not without risks

Subscribe: http://ab.co/1svxLVE
Read more here:
Tens of billions of dollars have been wiped off and injected back into the share market this week. Much of it relates to the on again, off again nature of the Iran war and mixed messages from the US administration. But there's also something of a buzz in the air as Elon Musk's SpaceX hits the boards of the NASDAQ. Morningstar Equity Market Strategist Lochlan Halloway said the float has everything you need to make it a "blockbuster", telling The Business, "It's got all the themes you'd expect of a headline-grabbing float. We've got rockets, we've got AI, satellites, Elon Musk ... all of these things are coming together, a confluence of factors, just to make this an absolute blockbuster." The float has been overscribed but it's not without risk. "We think it's worth less than it's being sold for, but the ban of uncertainty here is enormous. Some shareholders will see value in it, some won't. But I think we have to recognize here that the key point is a lot has to go right for this company, price where it is, to make sense as an investment," Lochlan Halloway said. And Australian superannuates will likely take on ownership of SpaceX, if only indirectly, through their superannuation. "If their superannuation allocation has some exposure to the US, the NASDAQ, for example, passively involved in the US at index weight. "They will pick up some SpaceX shares through this IPO process because it has been fast tracked for inclusion into the NASDAQ, which means it's going to come on quicker than usual and it might wind up in some Australian allocations in super or perhaps their direct shareholding accounts if they are subscribed through it directly," Mr Halloway said.
By the close of trade today the S&P/ASX 200 had gained 2 per cent to 8,804 index points. There were borad-based gains with only the energy sector falling on the back of lower oil prices.Over the week, the benchmark index gained2.1 per cent.



#ABCNEWS #ABCNEWSAustralia