Investors watch SpaceX IPO as Robinhood and SoFi access questions loom

Retail traders briefly feared they would miss out on the much anticipated SpaceX IPO before Elon Musk personally rejected rumors of a major lockout.

Elon Musk rejects claims of freezing out Robinhood and SoFi

On Tuesday, Elon Musk moved to calm anxious retail investors after speculation that Vlad Tenev‘s Robinhood and Tony Noto‘s SoFi would be excluded from the SpaceX IPO gained traction across social media.

The concern stemmed from a March 30 report suggesting Morgan Stanley‘s E*Trade was in talks to handle sales of SpaceX shares to smaller U.S. investors. Moreover, that report implied Robinhood and SoFi could be sidelined, sparking anger among the “dumb money” crowd that relies heavily on Robinhood’s trading app.

The article also highlighted that all retail investors had been promised access to 30% of SpaceX shares in the offering. That allocation would dramatically exceed the usual 5% to 10% range seen in most initial public offerings, which added to the sense of urgency among smaller traders.

However, once users on X began asking Musk directly to include Robinhood, he intervened. He stated the rumors were false and added that he and Vlad Tenev are “talking about it,” signaling ongoing discussions around how platforms like Robinhood and SoFi might participate.

That said, analysts still expect the listing to be one of the largest equity debuts on record. Forecasts suggest the offering could raise about $75 billion and value SpaceX near $1.75 trillion, ensuring every detail around retail investor access remains under intense scrutiny.

Massive bank group forms around SpaceX listing

Beyond the access debate, SpaceX is assembling a notably large bank underwriting group to manage the blockbuster float. At least 21 banks are currently working on the deal as of Tuesday, making it one of the biggest syndicate lineups in recent years.

The transaction, internally dubbed Project Apex, is expected to list in June, according to people familiar with the timeline. Moreover, the sheer size of the syndicate underscores expectations of enormous global demand from institutional and retail investors alike.

Five heavyweight firms are acting as main bookrunners: Morgan Stanley, Goldman Sachs, JPMorgan Chase, Bank of America, and Citigroup. Alongside those leaders, 16 additional banks have joined in smaller roles, roughly half of which had not previously been publicly linked to the transaction.

The expanded roster includes Allen & Co, Barclays, BTG Pactual, Deutsche Bank, ING Groep, Macquarie, Mizuho, Needham & Co, Raymond James, Royal Bank of Canada, Societe Generale, Banco Santander, Stifel, UBS, Wells Fargo, and William Blair. This broad lead bookrunners list and supporting cast highlight how aggressively banks are positioning around the deal.

Each institution is expected to concentrate on different aspects of the offering. Some will target large global asset managers and sovereign funds, while others will focus on high-net-worth clients. However, several are likely to specialize in channels crucial for ipo retail allocation across multiple regions.

The structure of the syndicate is still evolving, and additional banks could yet be added. That said, such expansive groups are common for listings of this magnitude, particularly in the technology and space industry valuation sphere.

Comparisons with past mega-IPOs

To put the SpaceX plans in context, past market giants have relied on similarly oversized bank teams. In 2023, Arm Holdings went public working with close to 30 banks, reflecting strong global demand for its semiconductor story.

Furthermore, Alibaba employed a very large syndicate in its 2014 listing, which still ranks among the biggest IPOs in history. These precedents suggest the scale of SpaceX’s banking lineup is in line with prior mega-deals rather than an outlier.

Investor interest has also been amplified by years of trading in SpaceX shares through private secondary markets. “Some SpaceX investors worry whether they actually hold the company’s stock, which has been sold through the opaque secondary market for private company shares,” Reuters reported, underscoring lingering concerns around title and transparency.

As excitement builds around the upcoming SpaceX IPO, questions about robinhood sofi access, the final bank roster, and exact valuation will likely dominate headlines until the company formally launches its long-awaited public debut.