Morgan Stanley earned close to $100 million in fees from SpaceX’s historic IPO, which took place June 11 and raised a staggering $75 billion. This massive debut not only set a record but also funneled over $74 billion into Morgan Stanley's wealth management division through employee stock plans linked to SpaceX shares.
The IPO involved selling 555,555,555 shares at $135 each, marking it as the largest public offering ever, more than double Saudi Aramco’s $29.4 billion record in 2019. Ten banks participated, with Morgan Stanley standing out because it also manages SpaceX’s employee stock plans, allowing it to lock in ongoing client assets beyond the initial fees.
The firm's wealth management arm, known as Workplace, saw $148.1 billion in new client money last quarter alone, more than doubling last year's $59.2 billion. Over half of that came from IPO-related stock plans, with a significant portion tied to SpaceX. However, only about 26% of that new capital moved into managed accounts that generate steady fees, down from 72% a year earlier. Industry estimates suggest Morgan Stanley could pull in over $100 million annually as those shares unlock and more assets flow in.
SpaceX’s first earnings report is due August 4, with analysts forecasting a 26-cent loss per share. The market will be watching to see if SpaceX’s financials can justify the colossal valuation and ongoing investor enthusiasm.
This information is for informational purposes only and does not constitute financial advice.
