The source says the updated prospectus also discloses share dilution risk, highlighting potential changes to investor ownership after an offering.
An updated SpaceX initial public offering prospectus, according to the source, states that a "5% special allocation" would be immediately sellable and also warns of share dilution risk. In IPOs (first public share offerings), special allocations can refer to a reserved portion of shares for certain investors or participants, while dilution means existing holders may own a smaller percentage of the company if more shares are issued. The source provides no further figures, timing, or regulatory filing details beyond those two disclosures.