SpaceX is planning to hold briefings from its executives in April as the Elon Musk-led company moves closer towards its initial public offering, according to a report by Bloomberg. This comes at a time when Reuters in a separate report said that the billionaire may offer a massive 30% allocation of shares of the SpaceX IPO to retail investors.
As per the Bloomberg report citing unnamed people familiar with the matter, the space startup has been telling potential investors to expect the briefings in April as advisors scramble to file for potentially the biggest listing of history.
SpaceX is set to hold the investor meetings that are supposed to “test the waters” in the weeks after the Easter holiday, Bloomberg reported quoting the people. The news agency earlier reported that Elon Musk’s space and AI company is set to file confidentially as soon as this month for the IPO that could raise as much as $75 billion.
According to one of the persons cited by Bloomberg, has already been holding somewhat informal meetings with prospective investors about the prospective listing.
The next briefings could potentially include more details on the SpaceX IPO that will validate the company’s valuation target, according to one of the persons quoted by Bloomberg.
The SpaceX IPO, which is targeted in June, could raise the value of the company to $175 trillion, the news agency previously reported.
At a $1.75 trillion market value, SpaceX would be bigger than all but five of the companies in the S&P 500 Index — Nvidia Corp., Apple Inc., Alphabet Inc., Microsoft Corp. and Amazon.com Inc. It would be larger by that metric than Meta Platforms Inc. and Musk’s own Tesla, the two other members of the so-called Magnificent 7 stocks that together account for more than one-third of the index’s market value.
30% retail allocation in SpaceX IPO
In a separate report, Reuters said citing a person familiar with the development that is discussing allocating as much as 30% of the SpaceX IPO to retail individual investors.
According to Reuters, the allocation, at least three times the usual retail slice, is aimed at keeping the SpaceX stock steady after its listing with the power of Musk’s fans — many of whom are interested in investing in the IPO.
The structure of the SpaceX IPO moves away from the usual Wall Street playbook and underscores Musk’s determination to shape both who owns SpaceX and how its shares trade once public, people close to the development told Reuters.
Elon Musk’s plan, which has been communicated to the Wall Street by SpaceX CFO Bret Johnsen, also comes with an “unusually hands-on approach to choosing bankers”, according to the people cited by the news agency.
SpaceX is assigning some firms narrowly defined roles based on personal relationships and past ties rather than allowing them to broadly compete for investors, they said, adding that the plan is not final and could change.
As part of that effort, Musk has handpicked Bank of America to focus on domestic retail distribution, according to four people familiar with the matter and cited by Reuters.
SpaceX has not yet finalised the size or timing of the offering, which is expected to test investor appetite for what could be one of the largest IPOs in history.