Starlink, a company that aims to bring affordable internet to the whole world through specialized satellite equipment, is not currently available on any stock exchange. Starlink is a division of SpaceX, which is also a privately owned entity.
Elon Musk, the founder of SpaceX and Starlink, stated that a Starlink IPO date is likely to be set in the near future. Until then, there are several ways that investors can gain indirect investment exposure to Starlink.
This article will cover Starlink’s future IPO date and discuss the different ways that investors can gain exposure before it occurs.
About Starlink
Starlink was officially formed in 2015 as an offshoot of SpaceX, a company that was founded by Elon Musk in 2002 that is officially known as Space Exploration Technologies Corporation. Starlink emerged as an alternative to cable-based internet services, with Musk and business partner Greg Wyler exploring the possibility of satellite connectivity as a more durable alternative.
The first Starlink satellites were launched in 2019. These satellites can provide a fast internet connection to people anywhere in the world as long as they purchase a Starlink receiver. One of the main selling points of Starlink internet is that it reduces the need to invest in cable routing and cell tower infrastructure, which can help to make internet access more accessible in developing countries and also reduce maintenance costs in developed economies.
Starlink’s self-orienting receiver, via Starlink
Starlink’s ability to provide internet access in the absence of established infrastructure came to the fore during the early stages of the Russia-Ukraine war in 2022. The Russian military destroyed cell towers and fiber optic cables in Ukraine, and Starlink was then used to restore internet access to the country. Since then, the Chinese government has threatened to remove Starlink satellites from low orbit, citing its military applications as cause for concern.
The Chinese government also complained to the United Nations after Starlink satellites almost hit the Chinese Space Station in low orbit. The government had complained that Starlink was making limited low orbit space overcrowded, and released a whitepaper calling for the destruction of Starlink satellites.
Despite several high profile disputes, Starlink continues to launch new satellites into low orbit in a bid to provide internet coverage to the majority of the earth’s surface. The core aim of Starlink is to establish a low cost, high speed internet service for people all over the world. As of September 2023, there are 4807 Starlink satellites in orbit.
How to invest in Starlink?
Starlink is not currently available on the stock market, and neither is its parent company SpaceX. As things stand, the best method for gaining investment exposure to Starlink is by gaining exposure to SpaceX, which can be done by investing in two trusts that are offered by Baillie Gifford.
The first Baillie Gifford trust, Scottish Mortgage Investment trust, contains a 0.8% exposure to SpaceX and is available on London Stock Exchange under the ticker symbol, SMT. The second trust is the US Growth trust, which is also available on London Stock Exchange under the ticker symbol, USA.
Will there be a Starlink IPO?
Elon Musk announced that a Starlink IPO date is likely to be set for 2025. This means that prospective Starlink investors will be able to get direct exposure to Starlink on the open market within the next few years.
How to invest in Starlink FAQs
Is Starlink on the stock market?
Starlink is not currently available on the stock market, but investors can gain indirect exposure through SpaceX. Baillie Gifford is a shareholder in SpaceX and offers two trusts that contain SpaceX exposure on the London Stock Exchange.
As a result, investors can gain indirect exposure to SpaceX by investing in these trusts, and since Starlink is a subsidiary of SpaceX, this would also provide exposure to Starlink.
Who owns Starlink now?
Starlink is owned by Space Exploration Technologies Corporation (SpaceX). Elon Musk, the founder of SpaceX, owns a 43.61% stake in the company with other shareholders including Google, Fidelity, and Baillie Gifford.
Can you invest in Starlink stock?
Right now, it’s not possible to invest in Starlink stock directly. However, Musk has revealed that SpaceX plans to launch a Starlink IPO in the near future.
When is the Starlink IPO date?
Musk stated that the Starlink IPO date is expected to be set for 2025.
The bottom line: Starlink is not a publicly traded company but there are plans for an IPO date in the coming years
As things stand, the only way to gain investment exposure to Starlink is by gaining indirect exposure to its parent company SpaceX, which is also privately owned.
There are several companies that have equity in SpaceX that are available on the stock exchange, including Google (NYSE:GOOGL) and two Baillie Gifford trusts: Scottish Mortgage Investment (LSE:SMT) and US Growth (LSE:USA).
While the existing methods for gaining Starlink exposure are not ideal, investors will be pleased to know that SpaceX has announced that a Starlink IPO date will be set in the near future. The Starlink IPO is expected to take place in 2025, which will allow public investors to gain direct exposure to the company.
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Source: https://coincodex.com/article/32785/starlink-stock/