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SpaceX lockup expiration frees 911.5M shares, boosting daily eligible float
The unlock expands freely tradable shares to 11.8% of outstanding stock from 4.9%, after SpaceX insiders become able to sell their holdings for the first time.
SpaceX’s stock is set to move through its first major lockup expiration on Thursday, when 911.5 million shares become eligible to trade for the first time, according to Yahoo Finance.
The first unlock increases the company’s eligible float to about 11.8% of shares outstanding, up from 4.9% before the expiration, more than doubling the freely tradable portion of the business. The 911.5 million shares eligible today are about 43% more than the 638.9 million shares the company floated in its June initial public offering.
The unlock arrives after SpaceX shares fell sharply following post-earnings selling, leaving the stock trading below its IPO price. Despite expectations that added supply could weigh on the stock, SpaceX shares rose in midday trading after hitting new lows, bucking the usual pattern tied to large unlock events.
SpaceX’s arrangement is also unusual because the company staggered expirations across nine tranches rather than releasing all restricted shares on a single date. JPMorgan’s Doug Anmuth said the first expiration could increase the float by about 143%, while Bank of America’s Ron Epstein characterized the unlock as a near-term technical drag rather than a definitive judgment on the company’s fundamentals.