SpaceX IPO Could See Massive Retail Demand

This article first appeared on GuruFocus.

SpaceX (SPACE) is starting to map out its IPO, and it is already clear this is not going to be a typical listing.

The company plans to begin its roadshow the week of June 8, with its prospectus expected later in May. But what really stands out is how much focus is being put on retail investors. SpaceX is planning a dedicated event for around 1,500 of them on June 11, and early signals suggest individual investor demand could be unusually strong. There has even been talk of allocating up to 30% of the shares to retail, compared with the usual 5% to 10% in most IPOs.

The scale of the deal reflects that ambition. Around 21 banks are involved, including Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS), and JPMorgan (NYSE:JPM), and the company is reportedly targeting a valuation above $2Trillion. Bankers are already hinting that demand levels could be unlike anything they have seen before, driven in part by Elon Musk's massive following.