Musk Shakes Up SpaceX IPO Strategy to Favor Small-Scale Fans Over Large Institutions

SpaceX IPO plans have made a different move as Elon Musk considers assigning a bigger share of the offering to retail investors. Reports indicate that up to 30% of the IPO could be assigned for individual participants. This move would be a shift from the traditional format, where retail investors receive between 5% and 10%.

SpaceX IPO Retail Allocation Breaks Industry Norm

According to a Reuters report, Elon Musk and the SpaceX team are exploring a structure that gives retail investors an unusually large share of the company. The proposed allocation could reach 30%, far above standard IPO practices. This change comes as SpaceX moves closer to filing its IPO prospectus. The company could submit confidential filings to the U.S. SEC within days.

In addition, valuation estimates continue to rise. Barron’s reported that SpaceX could target a valuation exceeding $1.8 trillion while raising around $50 billion. However, separate Bloomberg reports indicate that the company is also considering a higher fundraising range. Sources cited figures between $70 billion and $75 billion, which would surpass earlier expectations.

If confirmed, these numbers would make the SpaceX IPO the largest ever public offering. Saudi Aramco currently holds that record after raising more than $29 billion in its initial public offering in 2019.

Bank Roles and Distribution Strategy Take Shape

As planning has progressed, SpaceX has recruited specific financial institutions for particular roles. This approach varies from traditional IPO processes, in which banks often compete for broader mandates. Instead, the company seems to be dividing responsibilities by investor sector and geographic reach.

Bank of America is expected to play a role in domestic retail distribution in the United States. Meanwhile, Citigroup, which previously cut its 12-month targets for Ethereum and Bitcoin amid delays to the CLARITY Act, is reportedly set to manage international retail and institutional allocations. Other global banks may concentrate on their regional markets.

In addition, Morgan Stanley is expected to support retail participation through E*TRADE, the brokerage platform it acquired in 2020.

SpaceX IPO Gains Momentum Ahead of Filing

The SpaceX IPO is still on track, with Elon Musk’s SpaceX expected to file for an IPO this week, pointing to an imminent confidential submission. Advisers involved in the process have pointed out that preparations are ongoing. However, neither Elon Musk nor SpaceX have publicly disclosed the exact time.

At the same time, market expectations are continuing to build around the scale of the offering. Estimates put this valuation range at $1.5 trillion to $1.75 trillion, with some projections extending well beyond that.

In a related move, SpaceX has completed the acquisition of Musk’s artificial intelligence venture, xAI. This integration places xAI as a wholly owned subsidiary within the company. Combined private valuations for the businesses have reached approximately $1.25 trillion.