SpaceX's initial public offering has garnered more than $70 billion in orders from retail investors, according to sources familiar with the matter, as the potentially record-breaking debut approaches its final stages.
Retail Allocation and Demand
Retail investors are expected to receive at least 20% of the available shares, the sources said. With an IPO size of $75 billion—which would be the largest on record—this allocation means the majority of demand from individual investors will remain unfulfilled.
Leaving many of Elon Musk's supporters empty-handed in the IPO could amplify demand for shares once trading begins. Musk has cultivated a strong retail following during his leadership at Tesla, where retail investors own about 40% of the company's shares, according to BNP Paribas analyst James Picariello.
IPO Terms and Valuation
The terms of the offering, including the price of $135 per share and the total number of shares at 555.6 million, are unlikely to change, some sources indicated. SpaceX would raise approximately $75 billion in a deal that values the rocket, satellite, and AI company at around $1.8 trillion, based on outstanding shares in its filings.
The IPO is expected to become the largest ever, surpassing Saudi Aramco's $29.4 billion debut in 2019.
