SpaceX IPO: Musk may offer 30% stake to retail investors as company plans April briefings

SpaceX is planning briefings with executives in April as the Elon Musk-led company nears its initial public offering, according to a report. Bloomberg report. This comes at a time when Reuters said in a separate report that the billionaire could offer retail investors a massive 30 percent allocation of SpaceX IPO shares.

according to Bloomberg In the report, citing unnamed people familiar with the matter, the space startup is telling potential SpaceX IPO investors to wait for briefings in April as advisers try to file for what is potentially the biggest listing in history.

SpaceX is preparing to hold investor meetings in the weeks after the Easter holiday that are expected to “test the waters,” Bloomberg said, citing people. The news agency had previously reported that Elon Musk’s space and artificial intelligence company would file confidentially as soon as this month for an initial public offering that could raise up to $75 billion.

SpaceX is already holding informal meetings with potential investors about the potential listing, according to one of the people cited by Bloomberg.

According to information provided by Bloomberg, the next briefings may include more details regarding SpaceX’s IPO that will confirm the company’s valuation target.

The SpaceX IPO, targeted for June, could boost the company’s valuation to $175 trillion, the news agency previously reported.

With a market cap of $1.75 trillion, SpaceX would be larger than all but five companies in the S&P 500 Index (Nvidia Corp., Apple Inc., Alphabet Inc., Microsoft Corp. and Amazon.com Inc.). By that measure, the Magnificent 7’s shares are held by Meta Platforms Inc., two other members that together account for more than a third of the index’s market capitalization. and will be larger than Musk’s own Tesla.

30% retail allocation in SpaceX’s IPO

In a separate report, Reuters, citing a person familiar with the matter, said Elon Musk is discussing allocating up to 30% of SpaceX’s IPO to retail individual investors.

The allocation, which is at least three times the usual retail tranche, is intended to keep SpaceX shares stable post-listing and benefit Musk fans, many of whom are interested in investing in the IPO, according to Reuters.

The structure of SpaceX’s IPO moves away from the usual Wall Street playbook and underscores Musk’s determination to shape both who owns SpaceX and how its shares will be traded once it goes public, people close to the development said. Reuters.

Elon Musk’s plan, which was conveyed to Wall Street by SpaceX CFO Bret Johnsen, also includes “an unusually hands-on approach to selecting bankers,” according to sources cited by the news agency.

SpaceX has assigned narrowly defined roles to some companies based on personal relationships and past ties rather than allowing them to compete broadly for investors, officials said, adding that the plan is not final and may change.

As part of that effort, Musk has chosen Bank of America to focus on domestic retail distribution, according to four people familiar with the matter cited by Reuters.

SpaceX has not yet finalized the size or timing of the IPO, which is expected to test investors’ appetite for one of the largest IPOs in history.