SpaceX preparing June roadshow ahead of mammoth IPO - report

SpaceX is preparing to launch its initial public offering roadshow in early June as it moves closer to what could become the largest IPO on record, according to an exclusive report by Reuters released overnight on Tuesday.

The Elon Musk-led rocket and space technology company reportedly told its banking syndicate that it plans to raise around $75bn, implying a valuation of up to $1.75trn.

The roadshow was expected to begin in the week of 8 June, with roughly 125 analysts from 21 participating banks scheduled to meet management ahead of the investor presentations.

A defining feature of the offering would be an unusually large allocation of shares to retail investors.

Chief financial officer Bret Johnsen said individual investors would play "a critical part" in the IPO, Reuters said, reflecting their longstanding support for the company and its founder.

The move marked a significant departure from traditional IPO structures, where retail allocations typically account for between 5% and 10% of shares.

As part of the strategy, SpaceX planned to host around 1,500 retail investors at a major event on 11 June following the start of the roadshow.

Participation in the offering was expected to extend beyond the United States, with retail investors in the UK, Europe, Australia, Canada, Japan and South Korea also eligible, the report said.

The structure of the deal, including the final retail allocation, was apparently still being finalised and will be confirmed closer to launch.

Previous reporting indicated that founder Elon Musk had pushed for as much as 30% of shares to be reserved for smaller investors.

SpaceX was expected to publish its IPO prospectus in late May.

The transaction was being led by a group of major Wall Street banks, including Morgan Stanley, Bank of America, Citigroup, JPMorgan and Goldman Sachs, alongside 16 additional institutions supporting distribution across institutional, retail and international channels.

The targeted valuation represented a sharp increase from earlier benchmarks.

SpaceX was valued at about $800bn in a December tender offer, rising to a combined $1.25trn following its merger with Musk's artificial intelligence venture xAI in February.

Reporting by Josh White for Sharecast.com.