Scottish Mortgage Taps Market with Premium Share Issue as SpaceX Countdown Begins

UK fund sells treasury shares at premium, eyes June 2026 SpaceX listing. Holding revaluation could boost NAV by billions as private tech bets drive returns.

Scottish Mortgage Investment Trust is betting that the biggest initial public offering in history will unlock billions in hidden value lurking within its portfolio. The UK-listed fund sold 1.7 million treasury shares on Monday at prices just below 1,440 pence — a premium to net asset value that signals manager confidence, even as the wider market waits for the real prize later this year.

The placement came in two tranches and is the first significant equity issuance since the trust shifted from a buyback programme. Importantly, the shares changed hands above NAV, a mark of strong investor demand and a departure from the discounts that have plagued the sector.

SpaceX: The $500 Billion Valuation Gap

Elon Musk confirmed that SpaceX will list on the Nasdaq on 12 June 2026, in what is expected to be the largest IPO in financial history. The combined entity — created after SpaceX merged with Musk’s AI venture xAI in February — is targeting a valuation of $1.75 trillion. Scottish Mortgage currently carries its roughly 19% stake at an internal appraisal of $1.25 trillion, implying a gap of $500 billion between book value and the IPO price tag.

The trust’s holding was last marked at around $2 billion, but that figure is based on the lower $1.25 trillion valuation. A successful listing at $1.75 trillion would force an upward revaluation of the holding, delivering a significant boost to Scottish Mortgage’s NAV. The planned IPO size of up to $75 billion is already generating immense demand, with reports suggesting oversubscription of between 12 and 20 times.

Portfolios Beyond Musk

SpaceX is far from the only driver. Scottish Mortgage holds a 2.1% interest in Anthropic, the AI lab behind the Claude model, now valued at $900 billion. The trust recently received an indirect validation when Salesforce committed nearly $300 million in tokens to the start-up this year. Payment giant Stripe, another portfolio company, is valued at $159 billion.

These private holdings are the real engine of the trust’s appeal. A price-to-earnings multiple of 4.64 and a dividend yield of just 0.30% reflect a vehicle built not on recurring income but on the expectation of future mark-ups in unlisted tech names.

Technical Picture: Steady but Not Frothy

On Monday, the shares closed at €16.62 in Continental trading, down modestly on the day but still up roughly 20% year-to-date. The 50-day moving average of €15.45 provides a solid floor. In London, the stock is pressing against resistance near 1,513p. Analysts see a breakout above that level targeting 1,600p, supported by a cup-and-handle pattern and a golden cross from April 2024. The relative strength index of 40.6 suggests no overheating.

What Comes Next

All eyes are on the interim report due 20 May, which should clarify the exact revaluation of private holdings and the impact of the share placement. Short-term analyst targets range from 1,710p to 1,899p. For now, Scottish Mortgage is rolling the dice on the 12 June IPO — and the market is watching every move.