Jeffries Excluded from SpaceX IPO Becomes Unique Short-Selling Advantage

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Jeffries, excluded from underwriting SpaceX’s IPO, now serves as a unique channel for short sellers. Hedge funds not participating in the offering are turning to the firm for post-listing shorting strategies. SpaceX aims to price at $135 per share, offering up to 555.6 million shares to raise $750 billion, valuing the company at $1.75 trillion. The offering could reshape the risk-to-reward ratio for investors. Value investing in both crypto and traditional markets requires careful analysis of such high-stakes events.

BlockBeats news, on June 3, when SpaceX announced its IPO underwriters, Jefferies was not on the list; however, bearish investors and several senior executives at Jefferies Group viewed this as a rare opportunity. According to sources, hedge funds that did not invest in SpaceX are reaching out to Jefferies to inquire about the possibility of shorting SpaceX after its listing. As the largest U.S. investment bank not involved in SpaceX’s IPO, Jefferies is now uniquely positioned to facilitate these trades. A total of 23 banks participated in SpaceX’s IPO, encompassing the vast majority of Wall Street’s major players.


SpaceX's IPO is scheduled for June 12, with the stock ticker SPCX. SpaceX announced today that it plans to set the initial public offering (IPO) price at $135 per share, with approximately 555.6 million shares expected to be issued, raising up to $75 billion and valuing the company at approximately $1.75 trillion. If successfully completed, it will become one of the largest IPOs in global capital market history.


On trade.xyz, the SPCX Pre-IPO price is currently quoted at $189, implying a post-listing valuation of $2.25 trillion, which is 28.5% higher than the IPO price.

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