Scottish Mortgage Rewrites Risk Map and Taps Premium Issuance as SpaceX IPO Draws Near

Scottish Mortgage sells shares at premium, raises £95M without dilution, shifts from buybacks to capital raising, with SpaceX at 19.3% of portfolio and seeking higher unquoted limit.

Scottish Mortgage Investment Trust has redrawn its risk framework and shifted its capital strategy in one fell swoop, as the countdown to SpaceX’s Nasdaq debut this June reshapes the portfolio’s dynamics. The trust’s annual report, published on 1 June 2026, reclassifies macroeconomic, geopolitical and regulatory factors as risk amplifiers rather than standalone categories. Cyber threats are now labelled “moderate and rising,” while the discount risk has been downgraded to “falling and moderate,” reflecting an environment where premiums appear sustainable. Stricter internal control and risk-reporting standards take effect from April 2026.

The most tangible evidence of the new discipline came on consecutive trading days. On 1 June, Scottish Mortgage placed 2.35 million shares from its treasury at 1,516.50 pence each, followed the next day by 3.85 million shares at 1,545.42 pence. Both sales were executed at a premium to the cum-fair net asset value of 1,443.85 pence, meaning the first transaction carried a roughly 5% mark-up and the second a 7% premium. The two placements raised approximately £95?million without diluting existing shareholders — a rarity among investment trusts.

This is a clear departure from the buyback bonanza of recent years. Over the past two financial years, Scottish Mortgage repurchased 307.7?million shares, or about 22% of its then outstanding capital, spending £3.02?billion. In the last fiscal year alone, £1.31?billion went into buybacks. Now, with the share price up roughly 27% year to date and trading above NAV, the trust is replenishing its coffers instead. Treasury stock has shrunk from 371.9?million shares to 365.7?million, while shares in issue have risen to just under 1.12?billion. The demand is real: for three consecutive months Scottish Mortgage has been the most purchased investment trust on the Interactive Investor platform.

At the heart of the repositioning is SpaceX, which accounts for 19.3% of the portfolio. Baillie Gifford values the stake at $1.25?trillion, deliberately below the $1.75?trillion figure cited in press reports. The valuation rests on verifiable transactions, not market chatter. Yet the trust remains in the dark about critical IPO terms — lock-up periods for pre-IPO investors, whether Scottish Mortgage will receive the same conditions as other early backers, and the duration of any selling restrictions. If past private-company listings are any guide, a six-month lock-up is probable.

The next largest holdings are Taiwan Semiconductor (5.7%), ByteDance (4.7%), MercadoLibre (4.0%) and Stripe (3.9%). The unlisted exposure already runs high, and the board is seeking shareholder approval at the 2 July annual general meeting to raise the ceiling for unquoted holdings beyond the current 30%. In tandem, it is requesting a new authority to buy back up to 14.99% of issued shares — but only when the stock trades at a discount to NAV.

On the income front, the dividend has risen for the 43rd consecutive year. The total payout stands at 4.57?pence per share, a 4.3% increase, with a final dividend of 2.97?pence payable on 10?July 2026. For the financial year ending March?2026, the NAV advanced 27.4% and the share price climbed 26.8%. Over a decade, NAV has compounded at 435.2%, nearly doubling the FTSE All-World’s 233.9% return.

The stock recently traded at 17.59 euros, about 6% below its 52-week high of 18.85 euros, after giving up some ground in the wake of the placements. With a treasury still holding roughly 365?million shares, Scottish Mortgage has ample firepower to continue issuing at a premium as long as market demand persists. The SpaceX listing later this month will be the ultimate test of whether the new risk architecture and capital discipline can handle the weight of such a concentrated bet.