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Strengthening control with 10 voting rights per share...SpaceX's total debt amounts to 75 trillion won.
When aerospace company SpaceX, considered the biggest IPO candidate this year, goes public, founder Elon Musk is expected to gain what are known as 'super voting rights'.
Reuters reported on the 20th (local time) that, after obtaining and analyzing the confidential prospectus submitted by SpaceX this month, super voting shares will be granted to Musk and a few insiders after the IPO.
Class A shares held by general investors will be given one voting right per share, while Class B shares held by Musk and others will be given 10 voting rights per share.
Utilizing this differential voting rights system makes it easier for Musk to maintain control even after an IPO, and is also advantageous for defending management rights.
It also includes provisions that limit shareholders from influencing the appointment of directors or taking legal action.
After the IPO, Musk will retain his positions as CEO and CTO, and will also serve as chairman of the nine-member board of directors.
Through the prospectus, SpaceX's financial structure, which had been shrouded in secrecy, was also revealed.
As of the end of last year, SpaceX had total assets of $92 billion (approximately 136 trillion won), liabilities of $50.8 billion, and cash reserves of $24.8 billion.
Last year's annual revenue was $18.67 billion, with a loss of $4.94 billion. This was mostly attributed to artificial intelligence (AI)-related expenditures.
Musk received only $54,080 in compensation from SpaceX last year, but is expected to sit on a fortune worth billions of dollars after the IPO.
According to The Information, Musk purchased approximately $1.4 billion worth of company shares last year, and will receive an additional 60 million shares if SpaceX's market value reaches $6.6 trillion and it builds space data centers.
SpaceX's IPO is expected to be the largest IPO in history. SpaceX plans to raise a total of $75 billion and aims for a valuation of $1.75 trillion.
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