Key facts
- SpaceX's IPO is expected to value the company at $1.75 trillion.
- The company plans to allocate up to 30% of shares, or $22.5 billion, to retail investors.
- Several brokerage firms, including Fidelity, Robinhood, SoFi, E*Trade, and Charles Schwab, will distribute shares to eligible retail customers.
- Eligibility requirements for retail investors vary by brokerage, with some having low or no account minimums.
- International investors in select countries may also have access to the IPO, subject to local regulations and eligibility criteria.
SpaceX's highly anticipated initial public offering, with an expected valuation of $1.75 trillion, has generated substantial demand from retail investors eager to invest in Elon Musk's space exploration, satellite, and artificial intelligence ventures. The company is making a rare move by earmarking up to 30% of its shares, valued at $22.5 billion, for individual investors, a significant departure from the typical institutional dominance in blockbuster IPOs.
To participate, retail investors generally need an eligible brokerage account, meet minimum funding requirements, and submit an indication of interest. Brokerages like Fidelity, Robinhood, SoFi, E*Trade, and Charles Schwab are facilitating these purchases, with varying account minimums. Fidelity, for instance, recently lowered its requirement to $2,000. Brokerages caution against "flipping" shares shortly after trading begins, as this could restrict future IPO access.
International investors in several countries, including those in the European Economic Area, Australia, and parts of Asia, may also have access, though eligibility and share allocations will differ based on local regulations. Investors who do not secure shares during the IPO can still purchase them once trading commences on the public market, though prices may fluctuate significantly on the first day.
SpaceX's valuation, at approximately 110 times trailing sales, reflects high expectations for future growth. The company operates in a capital-intensive industry and has stated it does not anticipate near-term profitability. The stock may also face pressure from other upcoming AI company IPOs and the eventual release of shares held by early investors and employees after lockup periods expire. The company is unlikely to qualify for the S&P 500 soon due to profitability requirements.