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According to Reuters, SpaceX plans to allocate a large proportion of shares to retail investors in its record-breaking IPO.
Investing.com— Reuters, citing sources familiar with the matter on Monday, reports that SpaceX is planning an initial public offering, with an unusually large proportion of shares earmarked for retail investors. This move could reshape how major listing projects are structured.
The report says the rocket maker, led by Elon Musk, told bankers at a Monday meeting that it intends to reserve a substantial portion of shares for individual investors, and plans to hold a major event in June after the IPO roadshow begins, inviting about 1,500 retail investors to attend.
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Reuters reports that Chief Financial Officer Brett Johnson said retail participation would be a “key part” of the offering, with a size larger than any IPO to date—reflecting the long-standing support of individual investors.
Earlier media reports showed that the company is seeking to raise around $75 billion, which could become the largest IPO in history, with SpaceX’s valuation potentially as high as $1.75 trillion.
Reuters reports that SpaceX plans to begin roadshows the week of June 8, with analysts from 21 banks meeting the company before investor presentations. A large retail investor event is planned for June 11, and is expected to involve investors from the United States, Europe, and Asia.
The lead underwriters include Morgan Stanley, Bank of America, Citigroup, JPMorgan, and Goldman Sachs.
The report adds that the final structure and allocation proportions are expected to be determined close to the issuance.
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