SpaceX’s IPO marks a significant milestone for public markets. Elon Musk’s SpaceX plans to issue 555.6 million shares at $135 each, aiming to raise approximately $75 billion and achieve a valuation of around $1.8 trillion — making it the largest initial public offering (IPO) in Wall Street history.
The response so far has been blockbuster. SpaceX’s IPO has generated substantial interest, with institutional investors’ orders surpassing $10 billion, reflecting strong demand for its record-setting debut, reports Bloomberg.
The final price of Elon Musk’s SpaceX is expected to be set on June 11, with trading expected to begin on Friday, June 12, on Nasdaq under the name Space Exploration Technologies Corp. and the ticker SPCX.
“The listing is being closely watched as a test case for investor demand for high-growth, future-focused companies at enormous valuations. With reports suggesting OpenAI and Anthropic may also pursue public listings later this year, the SpaceX debut could offer an early indication of how markets view the next wave of technology and AI-related giants,” says Lukman Otunuga, Head of Market Research at global trading broker, FXTM.
IPO Allotment Process
When it comes to who gets the shares, the IPO allotment process works like this — shares predominantly go to institutional and high-net-worth clients, including mutual funds, hedge funds, pension funds, and wealthy individuals, which means Indian retail investors are excluded. Distribution to retail investors happens through brokerage platforms like Robinhood, Fidelity, and Charles Schwab.
Banks managing the offering for Elon Musk’s company are anticipated to cease taking orders from institutional investors after New York’s market closes on Wednesday at 4 p.m., according to unnamed sources cited by Bloomberg.
However, retail investors may continue to submit orders for SpaceX shares on certain platforms even after the Wednesday deadline, as the company has designated up to 30% of the offering for retail investors.
The IPO book-building process in the US differs significantly from India’s, where retail investors can use the ASBA method for IPO applications. Indian investors typically lack direct access to the US IPO allotment but can invest in SpaceX after its public listing through overseas platforms under the Liberalised Remittance Scheme.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investment in foreign securities involves significant risks, including currency fluctuations, different financial reporting standards, and varying regulatory environments. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.