SpaceX is preparing an initial public offering featuring a notably large allotment of shares reserved for retail investors, according to details shared by people involved in preparations. The company communicated plans to investment banks that a significant portion of the offering would be set aside for individual investors and that it intends to host an extensive retail event in June after the IPO roadshow begins.
In internal briefings, Chief Financial Officer Bret Johnsen emphasized that participation by individual investors will be "a critical part" of the offering and framed it as larger than retail allocations seen in previous IPOs. The company has pointed to sustained support from individual investors as a rationale for the emphasis on retail participation.
SpaceX is seeking to raise approximately $75 billion in the proposed public offering, a size that, if realized, would make it the largest IPO on record and could imply a valuation for the company of up to $1.75 trillion. The roadshow is planned to begin in the week of June 8, with a sequence of meetings involving analysts from 21 banks ahead of investor presentations.
A substantial retail-focused event is scheduled for June 11 and is expected to draw individual investors from the United States, Europe, and Asia. Lead underwriting duties are being handled by a group of major investment banks that include Morgan Stanley, Bank of America, Citigroup, JPMorgan, and Goldman Sachs.
Officials have indicated that the exact structure of the offering and the allocation among different investor classes will be finalized closer to the launch date. Those details are still under consideration as the company and its advisers prepare for the roadshow and subsequent investor engagements.
Sectors affected: public equity markets, investment banking, and individual investor participation in large-cap offerings.