SpaceX Sets $135 IPO Price, Eyes 30% Retail Slice

What just happened?

SpaceX fixed its IPO price at $135 per share, targeting a market cap of $1.77 trillion. The offering is aiming to raise roughly $75 billion, which would make it the largest IPO on record by a wide margin. Trading is set to begin Friday, according to CNBC reporting.

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How is this IPO priced differently?

Most IPOs offer a price range and then set a final price based on investor demand. SpaceX is not doing that. The company set a single, fixed price of $135 — take it or leave it. "Elon has dictated the price, and, assuming investors go for it, you can check that box," said Lise Buyer, founder, as reported by CNBC.

What is the timeline?

SpaceX plans to stop taking orders on Wednesday, June 11. That gives underwriters all of Thursday to allocate shares to asset managers and their clients. Trading begins Friday. The Wall Street Journal reports SpaceX is aiming to go public on June 12.

What makes the retail allocation unusual?

SpaceX is targeting 30% of shares for retail investors. On a $75 billion offering, that works out to roughly $22.5 billion directed to individual buyers. The typical IPO sets aside just 5% to 10% for retail. That gap is significant. Elon Musk also serves as CEO of Tesla, another trillion-dollar public company.