SpaceX is hard at work building its satellite-internet business, Starlink. Rumours surrounding a Starlink IPO have surfaced and investors are readily awaiting further news. Learn more about the anticipated listing and how to trade it with IG.
Why trade Starlink IPO with IG?
Trade before the IPO
If a grey market is available, you can get exposure to the company before the listing by trading its predicted market cap
Speculate on Starlink
Leverage your exposure with CFD trading
Trade on margin
Gain full exposure with a small initial deposit, but remember with leverage comes increased risk
When is the Starlink IPO?
There is no confirmed date for the Starlink IPO. Plans for the listing were announced by SpaceX in February 2020, but the company’s chief operating officer did not reveal when the listing is likely to happen. Some reports state that it may take several years.
How to trade the Starlink IPO
Before the listing
IG offers an exclusive range of grey markets, based on a prediction of a company’s market cap at the end of its first trading day. If available for Robinhood, you can:
- ‘Buy’ (go long) if you think the market cap will be higher than the price indicated
- ‘Sell’ (go short) if you think the market cap will be lower than the price indicated
After the listing
With IG, you can get exposure to Robinhood shares in the same way as you would with any other shares listed on the stock market. You can:
- Speculate on share price movements using CFDs
What are grey markets and how do they work?
Grey markets enable traders to get exposure to a company before it lists on a stock exchange. When you decide to trade the grey market, you’re trading on the estimated market valuation of a company. The official valuation is only released after the first day of trading – and it is based on the demand shown by the market that day.
So, if you think a company’s market cap will be higher than the grey market price, you’ll ‘buy’. If you think it will be lower than the grey market price, you’ll sell.
Trading in Starlink shares
When trading Starlink shares with IG, you’ll use CFD trading to speculate on share price movements. Because you don’t own any underlying assets when trading, you can speculate on both rising and falling prices.
You’ll only need a small deposit – known as margin – to open your position, while still getting exposure to the full value of the trade. Margin isn’t a direct cost to you, but it can have a big impact on the affordability of your trade but remember with leverage comes increased risk.
Trade in similar stocks today
If you want to get exposure to other companies in the satellite and advanced technology industries right now, you can choose between stocks such as Tesla and Virgin Galactic.
What will Starlink’s IPO value be?
Starlink’s IPO value will depend on market conditions at the time of the listing and the performance of its parent company, SpaceX, which was estimated to be worth $33 billion in May 2019.
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What is the Starlink business model?
Starlink is SpaceX’s satellite network aimed at providing worldwide internet access at very high speeds. The network consists of satellites that send information to ground receivers to provide the broadband coverage. There are currently around 240 Starlink satellites orbiting Earth, with batches of 60 being deployed at a time. Starlink’s internet service is expected to be fully operational by the end of 2020.
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1Based on revenue (published financial statements, October 2022).