Danish pension fund excludes SpaceX IPO from investment options due to governance issues.

      Denmark’s AkademikerPension, which oversees approximately $25 billion for academic professionals, has announced it will not engage in SpaceX’s initial public offering or acquire shares in any secondary market transactions, as reported by Bloomberg. Chief investment officer Anders Schelde labeled the company as “grossly overvalued” and pointed to what he considered a “catastrophic governance structure” as the main reason for their decision.

      The fund estimates that SpaceX's valuation should not reasonably exceed $1 trillion, significantly lower than the $1.8 trillion the company aims for when its marketing begins as early as June 4. Initial pricing could occur as soon as June 11. Additionally, AkademikerPension will steer clear of indexed equity products that involve SpaceX, indicating that it is not only avoiding the IPO but is actively excluding the stock from its overall portfolio.

      Schelde’s criticism revolves around Elon Musk’s dominance over SpaceX. The company’s S-1 filing disclosed that Musk possesses around 85% of voting power through a dual-class share structure where Class B shares have ten votes each, in contrast to the one vote allotted to the Class A shares offered to the public. Musk also holds the positions of chief executive, chief technology officer, and board chair.

      Such concentration of power implies that public shareholders will lack any real means to influence corporate decisions. Musk can appoint a majority of the board, and he cannot be removed as CEO without his agreement. After listing, SpaceX will assert controlled-company status, which removes it from Nasdaq regulations that mandate a majority of independent directors.

      Schelde characterized the arrangement as demonstrating "exceptionally poor performance on governance matters," stating that investors are being asked to accept an "unprecedentedly low-risk premium" for a company exhibiting this level of management entrenchment.

      AkademikerPension may be a relatively minor entity in the global capital markets, but its apprehensions resonate with larger institutions. In May, leaders from the California Public Employees’ Retirement System, the New York City Retirement Systems, and the New York State Common Retirement Fund, which collectively manage over $1 trillion, sent a joint letter to Musk criticizing SpaceX’s governance as "extreme."

      The letter characterized the IPO as presenting "the most management-favorable governance structure ever introduced to the US public markets at this scale." The pension fund leaders expressed concerns about Musk’s veto power over his own removal, the use of mandatory arbitration for shareholder claims, and the company's relocation to Texas, which obliges shareholders to own up to 3% of outstanding stock to file certain legal actions.

      AkademikerPension has a history of leveraging its portfolio for governance and political commentary. Earlier this year, the fund divested its remaining 200 shares in Tesla, citing Musk’s influence in what it perceived as damage to the brand and its value, along with issues regarding worker treatment and board independence.

      In January 2026, the fund sold around $100 million in US Treasuries, with Schelde commenting that the US government is "not a good credit" and that its long-term financial stability is questionable. This decision was made amid increasing tensions between Washington and Copenhagen over Greenland, although Schelde clarified that the choice was not directly linked to the diplomatic strain.

      The implications for the IPO suggest that the withdrawal of one pension fund with $25 billion in assets is unlikely to significantly impact a $75 billion capital raise. SpaceX has earmarked a notably high 30% of the offering for retail investors, and demand from individual buyers is expected to remain strong despite institutional governance concerns.

      The key question is whether the apprehensions voiced by AkademikerPension and the US pension fund coalition signify a broader trend that could affect pricing or long-term institutional ownership. Should SpaceX achieve a valuation of $1.8 trillion, it would be trading at about 96 times its projected 2025 revenue of $18.7 billion, a multiple that suggests several years of rapid growth from its Starlink satellite internet and xAI artificial intelligence division.

      After incurring a loss of $4.94 billion last year due to the integration of xAI, and given Musk’s history of ambitious yet capital-intensive projects, the burn rate is unlikely to diminish soon. For investors who align with AkademikerPension’s assessment that the company is worth half its proposed valuation, the governance structure inhibits any push for internal changes, leaving the only recourse to refrain from participation.