Elon Musk is considering allocating up to 30% of SpaceX’s IPO to retail investors, according to a Reuters report, representing a clean break from the typical 5-10% allocation seen in most listings.
The move reflects Musk’s strategy of relying on loyal backers and individual investors to stabilize trading after the start of what could be one of the biggest IPOs in history.
The proposed structure also gives Musk tighter control over how shares are distributed. Instead of allowing banks to compete broadly, SpaceX assigns companies specific roles depending on regions and investor segments. Bank of America is expected to focus on high-net-worth U.S. clients, while Morgan Stanley will process small retail orders through its E*TRADE platform. Other banks, including UBS and Citi, are responsible for international distribution.
The company is betting that its strong retail customer base, built through Musk’s track record with Tesla and Starlink, will translate into long-term shareholders rather than short-term traders. Demand is expected to be broad, ranging from family offices to small investors who have followed SpaceX in the private markets for years.
According to a Bloomberg report, SpaceX is preparing to hold investor briefings in April as part of early IPO discussions, and plans to file confidentially as early as this month. The offering could raise as much as $75 billion, potentially valuing the company at nearly $1.75 trillion and making it one of the largest public listings ever.
At the same time, restructuring is underway throughout Elon Musk’s ecosystem ahead of the listing. A report from the Wall Street Journal indicates that X has reduced its workforce and eliminated management positions following its integration with xAI. The changes aim to reduce costs and improve revenue generation as the combined entity aligns its operations ahead of the IPO.
SpaceX has not finalized the timing or size of the offering, and the structure remains subject to change. However, the planned allocation of a high proportion of retail securities and tightly controlled bank mandates demonstrate an unconventional approach that could reshape the way large tech IPOs are executed.
