SpaceX is preparing to allocate a smaller-than-expected share to retail investors in its major IPO. A source close to the matter said the Elon Musk-led company plans to direct a low 20% range of the sale to individual buyers.
This group includes international individual investors, online brokerage clients, and private bank customers. The initial expectation was that about 30% of the offering would be reserved for retail investors.
Distribution decisions are largely finalized but may still change. Therefore, the final ratio could differ before trading begins.
Trading expected to start on Friday
SpaceX is expected to begin trading on Friday. This IPO is considered to be one of the largest in history.
The company is projected to enter the market with a valuation of approximately $1.8 trillion. Allocating a smaller retail share indicates strong demand from institutional investors.
Nevertheless, the retail portion will remain one of the largest individual investor shares in the biggest US IPOs, considering the company's size.