Morgan Stanley Negotiates Sub-0.75% on $75B SpaceX IPO, Eyes $20B Employee Asset Pool
MS•Morgan Stanley is among five joint book-runners negotiating sub-0.75% underwriting fees on SpaceX’s projected $75 billion IPO, aiming to share in roughly $500 million in fees. Separately, more than 1,000 SpaceX employees are pooling an estimated $20 billion in assets to secure wealth-management fees under 0.5%.
1. Underwriting Fee Negotiations
Morgan Stanley, alongside Goldman Sachs, Bank of America, Citigroup and J.P. Morgan, is negotiating to limit underwriting fees on SpaceX’s IPO to under 0.75% of the roughly $75 billion raise. At that rate, the syndicate is expected to collect about $500 million in total fees, with MS positioned to take a larger share as a lead manager.
2. Collective Wealth-Management Push
More than 1,000 current and former SpaceX employees have organized a group managing nearly $20 billion in projected IPO proceeds to negotiate wealth-management fees below 0.5%. This collective effort could signal a new source of high-net-worth clients for Morgan Stanley’s wealth advisory business.
