Want to Buy SpaceX on IPO Day? Here's How.
Written by Adria Cimino for The Motley Fool -> SpaceX is on track to launch the biggest IPO ever. The company aims to make a record percentage of shares available to retail investors. One of the most anticipated stock market events of the year may be happening in a matter of d
The company aims to make a record percentage of shares available to retail investors.
One of the most anticipated stock market events of the year may be happening in a matter of days. I'm talking about the SpaceX initial public offering. Aiming for a valuation of almost $2 trillion, this Elon Musk company may complete the biggest IPO ever.
Investors might be excited by the sheer size of the operation, but also by SpaceX's presence in three high-growth businesses: space launches, satellite-based internet, and artificial intelligence (AI). And investors also could be intrigued by the leadership of Musk, who is known for innovation and ambitious goals -- for example, as chief of Tesla , Musk aims to commercialize fully autonomous vehicles.
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All of this means that all eyes may be on the SpaceX IPO as it unfolds. But how do you participate in this major investing event? Let's find out.
First, a quick note on what we know so far about the SpaceX IPO . Though the company hasn't confirmed the dates, a roadshow is expected to start in the coming days, with the IPO itself following on June 12, according to press reports.
In general, institutional investors are the major participants in IPOs, getting in on the stock at the offer price before the stock actually opens for trading. In fact, 90% to 95% of shares often are earmarked for these investors, with the small remaining percentage going to retail investors. But reports suggest Musk wants to make the SpaceX IPO a significant event for these smaller investors, earmarking about 30% of the shares for them.
This means that if you, as a non-professional investor, have been dreaming of getting in on the SpaceX IPO, that may be possible. SpaceX, in its registration statement, said that shares will be offered to retail investors through brokerages Charles Schwab & Co. , Fidelity, Robinhood Financial , and SoFi Securities . SpaceX says shares also may be made available through Morgan Stanley 's E*TRADE.
