Starlink – the worldwide broadband network, which includes 4,000 satellites is likely to launch an Initial Public Offering once the aerospace company can "predict cash flow reasonably well" in accordance to SpaceX CEO Elon Musk tweet.

  • Detailed instructions how to participate in Starlink IPO (pre-IPO, offering price) see belowπŸ‘‡
Starlink IPO Initial Public Offering
Starlink IPO 

What is an IPO and how it works

IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.

To go public, a company must have a track record of growth and other favorable results and hire an investment bank to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.

Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company with underwriters' help sets an initial price and date for the stock to begin trading on a stock exchange.

During five years, Starlink was being successfully developed in the US and Canada, and the investors acknowledged its potential, having invested over $10B. In 2020, Starlink and SpaceX got split, with the former being now treated as a separate company. By March 2024, it is expected to launch 50% of satellites into orbit, while the other 50% should be launched by 2027.

On October 26, 2020, Starlink started testing its satellite system, and this is not yet complete. Customers, however, can already purchase its equipment for $499 and pay $99 monthly to get satellite internet connection.

In December 2020, it was reported that the project would raise $885.50M the next year in order to provide web access to the remote locations in the United States. As of January 2021, Starlink network included 10,000 terminals.

The project is being financed by its shareholders, whose number is growing rapidly. As this is private investment, however, we are only aware of the amounts raised. For instance, it is known that in 2019, the project raised $1.02B, while in 2020 this amount reached $2B.

In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.

Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Starlink IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Starlink IPO shares when the company goes public via a commission-free trading app like eToro.

Below we share the instruction how to participate in the approaching Starlink IPO using Freedom Finance (Freedom24 platform). Β This marketplace is chosen as an example because Starlink IPO is already listed there.

* Freedom Finance services are NOT available to US citizens and residents.

  1. Apply for a Freedom Finance account β€” you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
  2. Deposit your account β€” to participate in an IPO, your account must have available funds in the amount you send IPO application for.
  3. πŸ’‘ Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
  4. Submit a request to participate in the IPO β€” when applications are open select Starlink IPO and click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
  5. Wait for allocation β€” The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
  6. Start of trading β€” With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start β€” a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
  7. Closing your trade β€” At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion β€” leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the β€˜Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Participate in Starlink IPO

Is investing in IPOs profitable?

Not always. The average return at the end of the lock-up period is 72%, past IPOs data.

Starlink IPO's IPO date is not defined yet. We will update when the exact Starlink IPO date IPO is known – if you want to get notified please subscribe for updates here.

Not defined yet. We will update when the Starlink IPO offering price is known – if you want to get notified please subscribe for updates here.

After the IPO you can buy Starlink IPO stocks via Freedom24 on the first trading day. Also you can use a commission-free trading app like eToro.

In what currency Starlink IPO and post-IPO shares will be traded?

The Starlink IPO and stock trading currency will be USD.

If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Transferwise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. TransferWise never hides fees in the exchange rate.

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IPO Calendar 2021
IPOs this week and upcoming 2021




Sources used: Bloomberg, CNBC, Crunchbase

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