WHO holds it β the IPO UNDERWRITERS, not employees: Goldman Sachs (lead bookrunner), Morgan Stanley (stabilization agent β the one who exercises it), JPMorgan (syndicate). 'Employees in green shoes' is a nod to the term; the real greenshoe goes to the banks.
TRIGGER: underwriters first sell ~15% MORE shares than the base deal (going short); within 30 days they either EXERCISE the option β buying the extra shares from SpaceX at the $135 IPO price β if the stock holds above offer, or buy in the OPEN MARKET to stabilize if it sags below $135.
HOW MUCH: ~83.3 million extra shares Γ $135 = ~$11.2 BILLION more capital; the deal rises from $75B to ~$85.7β86B if fully exercised (up to ~638.9 million shares).
THE KICKER (Bloomberg): SpaceX struck a RARE deal to pay the bankers $0 in fees for the $11.2B greenshoe β almost unheard of on a deal this size (Musk leveraged the demand to stiff the banks on the fee).
Separate: a directed-share program reserved up to 5% of Class A shares at the IPO price for 'certain employees and persons identified by the executive officers.'
Term origin: 'greenshoe' = Green Shoe Manufacturing Co., first to use the structure (1960 IPO) β hence the literal-green-shoes joke.