- SpaceX's stock will start trading on June 12.
- Retail investors can buy shares of Elon Musk’s rocket company.
- SpaceX plans to raise at least $75 billion from the IP
Elon Musk's SpaceX is set to launch its public issue next week. Shares will start trading on Nasdaq on June 12.
SpaceX's initial public offering (IPO) is set to be the largest ever public sale of shares and will make the company one of the top ten largest listed firms in the US.
The rocket maker plans to raise at least $75 billion from the sale. SpaceX is targeting a valuation of $1.75 trillion, which can break the previous record set by Saudi oil giant Aramco.
The company's prospectus said that if underwriters exercise a so-called “greenshoe” option to sell additional stock, the fundraising could rise to $85.7 billion. This would give SpaceX a market value of $1.78 trillion, Financial Times stated.
Who Can Buy SpaceX Shares?
The company plans to trade over 550 million shares at $135 apiece. However, the final share price will be announced on June 11.
Big institutional investors are likely to buy the stock. However, individual investors can buy SpaceX shares through certain investment platforms and brokers. The shares will be allocated as per demand before trading starts. A website for retail investors was launched by the company.
The shares allotted for retail investors will be made available through Morgan Stanley's E*Trade, as well as Fidelity, Charles Schwab, Robinhood and SoFi Technologies.
Fidelity said it needs a minimum requirement of $2,000 in brokerage accounts for investment in the SpaceX IPO, as per Forbes.
Schwab requires a minimum brokerage account balance of $100,000 while E*Trade, Robinhood and SoFi Technologies have not stated a minimum fund requirement.
It is unclear how many shares will be distributed across each platform, as per Forbes. Fidelity revealed that during share allotment, it would not consider the size of an investor's indication of interest, adding that participants won't receive more shares than they request. Robinhood and SoFi said stock allocations could be disallowed or limited for investors who took part in earlier public issues and sold shares within 30 days of the offering.
Elon Musk has said that SpaceX would direct the proceeds from the public issue to expand its AI infrastructure. It will also use the money to build its Starlink satellite internet constellation as well as development of space launch vehicles.
The company will also utilise the proceeds to repay a $20 billion bridge loan that was used to refinance debt inherited from X and xAI, Musk's other businesses.
