Musk plans 30% retail allocation for SpaceX IPO
Elon Musk intends to reserve up to 30% of SpaceX's upcoming initial public offering for individual investors, at least triple the typical 5-10% share in standard IPOs. Reuters reported Thursday that this approach breaks from convention, with SpaceX CFO Bret Johnsen pitching the oversized retail allocation to Wall Street alongside selective bank choices. Musk personally selected Bank of America to handle U.S. retail distribution, targeting wealthy individuals and family offices.
SpaceX adopted a "lanes" structure, assigning banks specific investor pools and regions rather than open competition. Morgan Stanley manages small retail investors through E*Trade, UBS targets affluent international individuals, and Citi oversees global retail and institutional distribution. Regional roles go to Mizuho for Japan, Barclays for the UK, Deutsche Bank for Germany, and Royal Bank of Canada for Canada.
This strategy reflects Musk's bet that loyal supporters—from longtime family offices to small investors drawn to his ventures—will stabilize the stock post-listing. "This is one of those once-in-a-lifetime moments where people feel they absolutely must participate," said Rowan Taylor, managing partner at aerospace-focused private equity firm Liberty Hall Capital Partners.
SpaceX prepares to file its IPO prospectus this week, eyeing a $75 billion raise at around $1.75 trillion valuation—surpassing Saudi Aramco's 2019 record of $29.4 billion. The prospect already lifts space stocks: Firefly Aerospace jumped 16% Wednesday, AST SpaceMobile and Rocket Lab each rose 10%, Intuitive Machines gained 15%, and Planet Labs climbed over 10%.
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