SpaceX is no longer just selling the biggest IPO in history, it is trying to sell it to the crowd. In a Monday night meeting with its full banking syndicate, the company told bankers it plans to reserve an unusually large share block for retail investors.
CFO Bret Johnsen said retail participation will be “a critical part” of the deal and bigger than in any IPO before it.
Most large IPOs reserve roughly 5% to 10% of shares for smaller investors, while Reuters previously reported Elon Musk wanted SpaceX to set aside as much as 30%.
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SpaceX plans to launch its IPO roadshow in the week of June 8, with about 125 analysts from the 21 banks on the deal scheduled to meet management the day before. On June 11, the company plans to host 1,500 retail investors at a major post-roadshow event, extending participation beyond the usual institutional circuit and turning the IPO marketing process into a public-facing demand signal.
In addition to the US, the company also plans to open the offering to everyday investors in the UK, EU, Australia, Canada, Japan, and Korea.
SpaceX is reportedly seeking to raise $75 billion in the flotation, which would value the company at up to $1.75 trillion and make it the biggest IPO on record if completed on those terms. Morgan Stanley, Bank of America, Citigroup, JPMorgan, and Goldman Sachs are leading the deal, with 16 additional banks filling institutional, retail, and international distribution roles.
One lead underwriter reportedly told the syndicate that the retail demand and allocation would be something they had “never seen before.” Johnsen framed that choice as a reward for long-time supporters of both SpaceX and Musk.
The company is expected to make its IPO prospectus public in late May, leaving only a narrow gap before the early June roadshow.
Information for this story was found via Reuters and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
