Danish Pension Fund Blacklists SpaceX IPO Over Governance Concerns
A Danish pension fund has blacklisted SpaceX, calling it grossly overvalued with catastrophic governance.
AkademikerPension, which manages roughly $25 billion for academic professionals, has stated it will not participate in SpaceX’s initial public offering (IPO) or buy shares in any secondary-market transaction, according to Bloomberg. Chief investment officer Anders Schelde labeled the company “grossly overvalued” and highlighted a “catastrophic governance structure” as the primary reason for this decision.
The fund estimates that SpaceX cannot reasonably exceed a valuation of $1 trillion, approximately half the $1.8 trillion the company is targeting when marketing begins as early as June 4th. Pricing could occur by June 11th. AkademikerPension will also avoid indexed equity products that include SpaceX, effectively excluding the stock from its entire portfolio.
Governance Complaint
Schelde’s objection centers on Elon Musk’s control over SpaceX. The company’s S-1 filing reveals that Musk holds roughly 85% of voting power through a dual-class share structure, granting Class B shares ten votes each compared to one vote for the offered Class A shares. Musk, serving as CEO, CTO, and board chair, cannot be removed as CEO without his own consent.
This concentration of control means public shareholders will have no practical influence over company decisions. SpaceX will claim controlled-company status post-listing, exempting it from Nasdaq rules requiring a majority of independent directors.
Schelde described this arrangement as “exceptionally poor performance on governance matters” and criticized investors for accepting an “unprecedentedly low risk premium” for such a company.
Not Alone in Concern
AkademikerPension is a relatively small player in global markets, but its concerns align with those of larger institutions. In May, heads of the California Public Employees’ Retirement System, New York City Retirement Systems, and New York State Common Retirement Fund—collectively managing over $1 trillion—sent a joint letter to Musk, criticizing SpaceX’s governance as “extreme.”
The letter highlighted the IPO’s "most management-favorable governance structure ever brought to the US public markets at this scale," objecting to Musk’s veto power, mandatory arbitration for shareholder claims, and the company’s reincorporation in Texas.
A Pattern of Activist Divestment
AkademikerPension has shown a history of activist divestment, previously opposing investments in other companies due to governance concerns.