SpaceX cuts retail IPO allocation to low 20% range, source says

SpaceX is gearing up for its highly anticipated initial public offering (IPO), with a twist in the allocation strategy. According to a source familiar with the matter, the aerospace company, led by Elon Musk, plans to allocate a smaller percentage, in the low 20s, of the offering to retail investors. This includes international individual investors, online brokerages, and private-bank clients.

This allocation decision comes as a surprise, as earlier expectations hinted at roughly 30% of the deal being reserved for retail investors. Despite the lower allocation, the retail tranche would still be significant and rank among the largest for a U.S. IPO of this magnitude.

With SpaceX set to begin trading on Friday, the IPO is expected to be one of the largest in history, valuing the company at around $1.8 trillion. The reduced allocation to retail investors indicates strong institutional demand for the shares, as investors vie for access to what is considered one of the hottest IPOs in recent years.

It is important to note that the allocation decisions are nearly finalized and could potentially change. The competition for SpaceX shares underscores the excitement and interest surrounding the company’s public debut.

As the countdown to the IPO continues, investors and enthusiasts alike are eagerly awaiting SpaceX’s entry into the public market. Stay tuned for more updates on CNBC’s live coverage of the SpaceX IPO.

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