Scottish Mortgage gains as SpaceX IPO gains momentum

Scottish Mortgage Investment Trust PLC (LSE:SMT) shares edged higher on Tuesday, taking gains this year to nearly 10%, as investors respond to the growing excitement around the IPO of one of its largest private investments: SpaceX.

The Baillie Gifford-managed trust rose 1.3% to 1,284p this morning, with interest boosted by further reports today on SpaceX's preparations for a record-breaking initial public offering, with a strong focus on retail investors.

Already the largest investment in its portfolio, the trust last week reported a further uplift in the carrying value of its shares in Elon Musk's rocket and satellite company, which lifted its net asset value to 1,316.12p at the end of March.

The move has increased SpaceX's weighting in the portfolio to 19.3%, up from 15.4% at the end of February and 8.2% in November.

The trust has been increasing its exposure to private companies more broadly. Last month, it asked shareholders to approve a change allowing up to £250 million of additional unlisted investments even if its existing 30% limit is exceeded.

The shift reflects a growing focus on earlier-stage growth opportunities and a trend for companies to remain unlisted for longer.