Elon Musk’s rocket company SpaceX has shared new details about its upcoming initial public offering during a private meeting with banking partners, revealing plans to allocate an unusually large number of shares to individual investors and schedule a special event for 1,500 retail participants in June.
During a virtual conference with bankers on Monday evening, SpaceX Chief Financial Officer Bret Johnsen emphasized the company’s commitment to everyday investors, stating that “Retail is going to be a critical part of this and a bigger part than any IPO in history,” according to two sources with knowledge of the discussion.
Johnsen explained that the substantial retail component reflects the company’s appreciation for long-term supporters, saying the large retail component is by design as “those are folks that have been incredibly supportive of us and of Elon (Musk) for a long time, and we want to make sure that we recognize that.”
The aerospace manufacturer is preparing for what industry experts expect to be the most significant initial public offering ever recorded, with plans to raise $75 billion and achieve a company valuation of up to $1.75 trillion.
Company executives have scheduled their investor roadshow to commence during the week of June 8, when leadership and financial advisors will present the investment opportunity to potential backers. Approximately 125 financial analysts representing the 21 participating banks will meet with SpaceX representatives one day prior to the roadshow launch.
On June 11, SpaceX will host a major investor gathering for 1,500 retail participants. The company plans to extend participation opportunities to individual investors across multiple countries, including the United States, United Kingdom, European Union, Australia, Canada, Japan, and South Korea.
A lead underwriter from the banking syndicate told the group of 21 investment firms that the retail demand and share allocation will exceed anything they have “never seen before,” the sources indicated.
Final details regarding the offering structure and exact retail allocation percentages will be determined closer to the IPO launch date. Previous reports indicated that founder Elon Musk sought to reserve as much as 30% of company shares for smaller investors, significantly higher than the typical 5% to 10% allocation seen in most public offerings.
SpaceX plans to release its public IPO prospectus document in late May. The company has not yet responded to requests for comment regarding the disclosed details.
