Key facts
- SpaceX plans to allocate up to 30% of its IPO deal to individual investors.
- Offerings are planned in the UK, Germany, Denmark, France, the Netherlands, Norway, Spain, Sweden, and Switzerland.
- Eight online investing platforms in Britain have invited UK customers to apply for shares.
- The SpaceX IPO is valued at $1.75 trillion with a float size of less than 5%.
- Experts warn of risks due to high valuation and lack of voting rights for retail investors.
SpaceX is preparing for a highly anticipated initial public offering (IPO), planning to allocate an unusually large portion, up to 30%, of the deal to individual investors. Offerings are slated for the UK, Germany, Denmark, France, the Netherlands, Norway, Spain, Sweden, and Switzerland. In Britain, eight online investing platforms have begun inviting customers to apply for shares, with some viewing it as a significant retail offering that could re-energize a lacklustre investing culture. However, experts caution that the $1.75 trillion valuation, a small float size of less than 5%, and a lack of voting rights pose risks for retail investors compared to institutional investors. SpaceX founder Elon Musk expressed confidence in the company's revenue projections, stating revenue had become "much more predictable." Platforms like Hargreaves Lansdown, which reported 35,000 clients registered interest, and Revolut are facilitating access, with minimum application amounts set at $750 and £1,000 respectively. This approach to retail participation in IPOs is noted as a new trend for technology companies, which have shifted from having at most 15% of their order book with such investors to double that.