SpaceX cuts retail IPO allocation to low 20% range, source says
SpaceX The company is allocating a smaller-than-expected portion of its blockbuster initial public offering to retail investors, according to a source familiar with the matter.
The Elon Musk-led company plans to direct the lowest portion of 20 percent of the offering to retail buyers, including international retail investors, online brokers and private bank clients, the source said.
The allocation fell short of previous expectations that roughly 30% of the deal would be reserved for retail investors.
Allocation decisions are almost final and could still change, the person said.
SpaceX will begin trading on Friday in what is poised to be one of the largest IPOs in history. The company’s value is expected to be approximately $1.8 trillion.
The reduced allocation suggests institutional demand for shares is strong at a time when investors are competing for access to the hottest IPO in years. Even with a smaller allocation, the retail tranche would be among the largest ever in a U.S. IPO of this size.
