SpaceX IPO rewrites Wall Street norms: retail investor quotas to reach three times the usual, investor meetings to start after Easter

According to 1M AI News monitoring, SpaceX is notifying potential IPO investors that an investor briefing hosted by company executives is expected to launch after the Easter holiday in April, with the earliest secret IPO application submission this month. The IPO could raise up to $75 billion, with a valuation potentially reaching $1.75 trillion, surpassing Saudi Aramco’s 2019 record of about $290 billion, making it the largest IPO in history.

In terms of allocation structure, Elon Musk is considering distributing up to 30% of shares to retail investors, which is at least three times the usual 5% to 10% allocation. SpaceX CFO Bret Johnsen has communicated this plan to Wall Street. Musk’s strategy relies on a loyal group of individual investors to stabilize the stock price after listing and reduce short-term selling.

SpaceX has also designated “segmented” roles for underwriters based on client groups and regions, rather than allowing banks to compete freely:

1. Bank of America: responsible for high-net-worth individuals and family offices in the U.S.
2. Morgan Stanley: serving retail investors through its E*Trade platform
3. UBS: responsible for international high-net-worth investors
4. Citibank: coordinating international retail and institutional distribution
5. Mizuho, Barclays, Deutsche Bank, and Royal Bank of Canada cover the Japanese, UK, German, and Canadian markets respectively

The final size and timetable of the IPO have not yet been determined.