SpaceX is set to allocate a smaller portion of its initial public offering (IPO) to retail investors than previously anticipated. According to sources familiar with the plans, the company, led by Elon Musk, intends to reserve about 20% of the offering for retail buyers, which includes international individual investors, online brokerages, and private-bank clients. This figure falls short of the earlier expectation of approximately 30%.
As the IPO approaches, with trading commencing Friday, the offering is anticipated to be one of the largest in history, potentially valuing SpaceX at around $1.8 trillion. The decision to reduce the allocation of shares for retail investors likely reflects strong institutional demand, highlighting the competition among investors to partake in this highly sought-after IPO. Despite the reduced share for retail, the available portion remains one of the largest ever designated for a public offering of this scale in the United States.
The allocation decisions are reportedly close to finalization but may still be subject to change.
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