Elon Musk Eyes Massive 30% Share for Fans in Upcoming SpaceX IPO, Says Report

Image: SpaceX

Elon Musk is planning to break the standard Wall Street playbook by reserving up to 30% of the SpaceX initial public offering for individual investors. According to a report from Reuters, this retail allocation is at least three times larger than what is typically offered during a major stock market debut.

Musk is reportedly leaning on his loyal fan base to help stabilize the stock when it first starts trading. People familiar with the matter suggest that these long-term supporters are less likely to sell their shares quickly compared to institutional investors. The space company could reach a massive valuation of $1.75 trillion as it prepares to go public.

The strategy involves a highly controlled “lane” structure for the banks involved. Instead of letting firms compete for all investors, SpaceX is assigning specific roles based on geography and investor type. For example, Bank of America has been handpicked to focus on wealthy individuals and family offices in the United States.

Other banks have been given regional assignments to manage international demand. Royal Bank of Canada is set to handle the Canadian market, while Barclays will cover the United Kingdom and Mizuho will manage distribution in Japan. Morgan Stanley is expected to use its E*Trade platform to reach smaller retail investors.

The demand for the IPO is expected to be incredibly high, with some experts comparing the excitement to Google’s market debut two decades ago. While the final size and timing of the offering have not been set, the move underscores Musk’s desire to choose exactly who owns a piece of the company that dominates the rocket launch industry.