Bill Ackman is proposing an alternative path for taking Elon Musk’s SpaceX public that would bypass traditional Wall Street underwriters and give retail investors direct access to the offering.
In a new post on X, the billionaire and Pershing Square founder pitches Musk on merging SpaceX with Pershing Square SPARC Holdings, a recently approved acquisition structure designed to eliminate underwriting fees, founder stock and dilutive warrants.
Ackman says the structure would allow SpaceX to go public with a 100% common stock capital structure and minimal transaction costs, which would be covered by SPARC rather than the company.
“Elon Musk, what if we took SpaceX public by merging it with Pershing Square SPARC Holdings, Ltd., a new form of acquisition company that was approved by the SEC (Securities and Exchange Commission)… The result would be an IPO without any underwriting fees or dilutive securities issued. SpaceX would go public with a 100% common stock capital structure.”
According to the billionaire, his proposal involves distributing special purpose acquisition rights, known as SPARs, to existing Tesla shareholders, giving them the right to invest directly in the SpaceX offering or sell those rights in the market.
“This would reward loyal Tesla shareholders with the opportunity to invest in SpaceX while totally democratizing the IPO process.”
Under the proposal, Ackman says Pershing Square would commit $4 billion of capital at a fixed price per share and conduct due diligence on behalf of participating investors. Ackman says the transaction would not be subject to market conditions once a definitive agreement is reached.
Ackman also outlines a longer-term vision in which holders of SpaceX SPARs would receive additional rights that could later be used to take xAI public, creating a pipeline for future Musk-led offerings outside the traditional IPO system.
“The alternative is an IPO, which favors big institutions and leaves retail investors behind, all at a substantial cost to SpaceX.”
Should Musk accept the proposal, it could create a blueprint for future listings that shifts power away from financial intermediaries and toward companies and their long-term shareholders.
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.