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MoneyWeek reports that one UK investor who bought SpaceX shares at the $135 IPO price in June was roughly at break-even by the end of October, while a buyer who entered at $160.95 at the end of the first trading day was down about 16% in dollar terms. The example illustrates how access to an IPO offer price can differ from buying after public trading begins; it does not establish that IPOs generally perform this way.
A MoneyWeek report says two hypothetical UK investors who bought SpaceX shares at different points in the same June IPO had markedly different results by the end of October: the investor allocated shares at the $135 offer price was roughly at break-even in dollar terms, while one who bought at $160.95 at the end of the first trading day was about 16% down. The comparison highlights a practical IPO problem: access to the initial price may be limited, while buying once trading starts can mean paying more.
The report’s example compares an investor who applied for SpaceX shares in June and received them at the IPO price with one who missed that allocation and bought at the end of the first day of trading. The second investor paid $160.95 per share, compared with the first investor’s $135 per share. MoneyWeek says the results are measured in dollars through the end of October.
On that basis, the IPO-price buyer had roughly broken even, while the first-day buyer was about 16% down. These are figures from the report’s particular comparison, not a forecast or evidence that all IPO buyers will experience the same outcome. The source material does not provide further details about the investors’ holdings, transaction costs, or any currency-conversion effects for UK-based investors.
The report frames the difference as a question of access and timing. An IPO offer price is not necessarily available to every interested investor; someone who does not receive shares may have to decide whether to buy after public trading begins, when the market price can differ from the offer price.
Access Can Shape an IPO Entry Price
The example matters because the IPO price and the first-day market price were substantially different in this case. An investor who could buy at $135 entered at a lower price than someone who bought at $160.95 after trading began. That gap helps explain why headline interest in a new listing does not mean all investors can participate on the same terms.
For readers weighing an IPO, the distinction is between being offered shares before trading and buying them later in the open market. The latter can provide access when an allocation is unavailable, but the buyer is exposed to the price prevailing at that time. The report’s figures show a difference in outcomes for this example, not a general rule about the value or risk of IPOs.
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From June Offer to October Results
The comparison has three stated points in time: an IPO in June, a second purchase at the end of the first trading day, and a performance check at the end of October. MoneyWeek identifies the offer price as $135 and the later purchase price as $160.95. It describes the first investor as roughly at break-even and the second as down about 16%, both measured in dollars.
The source presents SpaceX as an illustration of the broader challenge of buying into sought-after IPOs. It does not give the size of the offering, the number of shares available to either investor, allocation criteria, or evidence about how frequently retail investors receive IPO shares. Those omissions limit how far the example can be generalized.
“The first applied in June and got them at the $135 initial public offering (IPO) price. The second missed out and bought at the end of the first day’s trading, at $160.95.”
— MoneyWeek report
Limits of the SpaceX Comparison
The source material does not explain how the two investors obtained or failed to obtain shares, whether the example is based on actual investors, or how the end-of-October values were calculated. It also does not state whether fees, taxes, or currency movements are included. The stated results should therefore be read as the report’s dollar-denominated illustration rather than a complete account of each investor’s returns.
There is no broader dataset in the supplied report extract showing how other IPOs performed or how often investors receive allocations. It is not clear from this example alone whether the same price pattern applies to other listings, or what happened to SpaceX shares after the end-of-October comparison date.
Further Trading Will Change the Picture
The reported comparison ends at the end of October. The supplied material does not identify a subsequent price milestone or a scheduled event that would resolve the allocation question. Any later assessment of the two positions would need an updated share price and a clearly stated measurement date.
For prospective buyers, the immediate distinction remains whether they can obtain shares at an offer price or must buy once public trading begins. The example offers no assurance about future performance: the price can move after either purchase, and the report does not provide enough information to predict the next direction.
Key Questions
What happened in the SpaceX IPO example?
MoneyWeek compared a buyer who received shares at the $135 IPO price in June with one who bought at $160.95 at the end of the first trading day. By the end of October, the first was roughly at break-even and the second was about 16% down in dollar terms.
Why did the two investors have different results?
The second investor paid a higher price after trading began. The report’s example shows how the timing and price of entry can affect the result over the same period.
Does the report show that IPOs usually lose value?
No. The source provides one SpaceX comparison and no wider performance data. It cannot establish a general pattern for IPOs.
Were the results adjusted for fees or currency changes?
The supplied material does not say whether fees, taxes, or currency movements were included. It specifies that the comparison is in dollars.
Source: moneyweek.com
