SpaceX has approved a five-for-one split of its shares, a step that reduces the price of each share while leaving the overall value of investors’ holdings unchanged.
The split lowers the assessed fair-market value of a single share to about $105.32, from roughly $526.59 previously. The company said the change was expected to be completed by May 22.
The timing is closely tied to the company’s plans for a public listing. SpaceX, the rocket and satellite company controlled by Elon Musk, is preparing for an initial public offering on the Nasdaq exchange expected in June.
Stock splits are commonly used by companies ahead of, or shortly after, a listing to bring the headline share price into a range seen as more accessible to individual investors. A lower price per share does not change a company’s total market value or an investor’s proportional stake.
A successful listing would be one of the largest in recent years and would give public investors their first direct access to a business that has reshaped the launch industry and built the Starlink satellite-internet network.
SpaceX has not confirmed a precise date or price range for the offering. The company has said little publicly about the structure of the listing, and bankers cautioned that the timetable could still shift depending on market conditions.