Elon Musk is considering allocating up to 30 per cent of SpaceX’s long-awaited IPO to retail investors, in a break from a standard Wall Street practice for what could be one of the biggest listings in years.
The proposed structure, which is not yet final, would give individual investors a far larger share of the offering than usual, where retail allocations typically sit between five and ten per cent.
The move is designed to tap into Musk’s large cult following and long-term backers as the firm prepares for a potential debut at a valuation of up to $1.75 trillion (£1.32 trillion).
SpaceX finance chief Bret Johnsen has been discussing the plan with banks, it has been reported, with the firm also taking a more hands-on approach to how the IPO is structured.
Elon Musk has reportedly assigned banks to tightly defined roles rather than allowing them to compete broadly for investor demand.
Bank of America is expected to focus on US high-net-worth individuals and family offices, while Morgan Stanley will handle smaller retail orders.
Other banks have also been given regional mandates, like Barclays in the UK, Deutsche Bank in Germany and Royal Bank of Canada in Canada.
Retail push tests demand
The unusually large retail allocation shows expectations of strong demand for individual investors, from smaller shareholders to wealthy family offices that have followed the firm in private markets.
“This is one of those lifetime moments in which people may say they just have to get in”, said Rowan Taylor, managing partner at Liberty Hall Capital Partners.
SpaceX is betting those investors will be more stable holders than short-term traders, helping to avoid sharp sell-offs often seen after high-profile listings.
The IPO, which could be one of the largest ever, comes as Musk reshapes the firm’s broader strategy.
His recent decision to fold xAI into SpaceX has strengthened its positioning as a combined infrastructure and AI play.
But the move also adds complexity to the investment case. While the firm is already profitable and dominant in rocket launches, xAI remains a cash-intensive business in a highly competitive sector.
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