SpaceX is taking an unusual approach to its highly anticipated IPO. Instead of offering a price range and adjusting it based on investor demand, the company has set a fixed share price of $135, valuing the business at about $1.77 trillion. The move reflects Elon Musk’s confidence in investor interest, but it also leaves questions about how shares will ultimately be distributed.
While the price appears settled, the allocation process is still underway. Investment banks and brokerage firms must decide how the roughly $75 billion worth of shares will be divided among institutional and retail investors before trading begins. SpaceX has indicated that retail investors could receive as much as 30% of the offering, far above the 5% to 10% typically seen in most IPOs. Platforms such as Charles Schwab, Fidelity, Robinhood, SoFi, and E-Trade are expected to participate in the distribution.
The company is also moving faster than usual. Reports suggest SpaceX stopped taking orders earlier than planned to give underwriters more time to organize allocations for what could become the largest IPO in history. Investor demand remains strong despite the company posting an operating loss of $4.2 billion last year, highlighting how much excitement surrounds both SpaceX and the broader AI and space technology sectors. The final breakdown of who gets shares will likely remain unknown until just before trading starts.
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