SpaceX IPO "Greenshoe" Option Rare Zero Rate Musk Also Gets Bankers to Actually Wear Gre

SpaceX, which has already secured a record-low underwriting fee for its first-ever public offering, has managed to negotiate an even more favorable condition from its investment bankers. If the underwriters for this offering agree to exercise their overallotment option and sell an additional 15% of shares, Elon Musk's rocket, satellite, and artificial intelligence company will not have to pay any fees. This option, known on Wall Street as the "greenshoe," means that Goldman Sachs, Morgan Stanley, and other banks involved in the offering will miss out on an additional $75 million in fee income. In this transaction, the greenshoe option grants the underwriters the right to sell an additional $11.25 billion in shares. This amount alone exceeds the financing of most IPOs, and the fact that the bankers have agreed to do this work for free has made it even more remarkable. The bankers have 30 days to exercise the greenshoe option. Representatives from Morgan Stanley and Goldman Sachs declined to comment. Musk's conglomerate has agreed to pay $500 million to the underwriting team for this offering, which is equivalent to approximately 0.67% of the $75 billion IPO fundraising amount. Despite the low fee rate, this is still one of the highest underwriting fee amounts in Wall Street history.