Elon Musk's SpaceX has already drawn over $70 billion in orders from retail investors ahead of its IPO on Friday, according to a new report.
Bloomberg noted that retail investors are expected to get at least 20% of the shares in the company. However, it added that conversations are still ongoing and details of the offering could change. Reuters had previously reported that the figure could amount to 30%.
The company has also told working on the offering that it won't change its share price, currently set at $135.
Reuters detailed that the stance means that the company's CEO, Elon Musk, intends to hold the IPO according to his preferences, in contrast with Wall Street tradition.
The company is seeking a valuation of approximately $1.75 trillion in its planned initial public offering and aims to raise at least $75 billion through the offering and has shared the valuation target with investors during preliminary meetings ahead of its IPO roadshow.
The valuation includes a greenshoe option that would allow underwriters to sell additional shares if investor demand exceeds the initial allotment.
SpaceX's IPO is expected to be structured as an all-primary offering, meaning proceeds would go directly to the company rather than existing shareholders, according to the news agency. Reuters reported that investor presentations are scheduled to begin this week as the company prepares for its stock market debut.
Founded by Elon Musk in 2002, SpaceX has grown into a dominant force in the global space industry through its Falcon rocket program, cargo and crew transportation missions, as well as Starlink satellite internet network. The company has become a key launch provider for commercial customers, governments and NASA, while expanding broadband services through Starlink across dozens of countries.
SpaceX has reportedly been negotiating underwriting fees below 0.75%, an unusually low level for a deal of this size, according to Bloomberg News. Even at that level, the offering could still generate hundreds of millions of dollars in fees for participating investment banks because of the transaction's scale.
Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and JPMorgan are among the banks leading the offering, according to Reuters.
The IPO is also expected to include a directed share program. A separate Reuters report said the company plans to reserve approximately 5% of shares for selected employees and other individuals designated by company leadership, while waiving certain lock-up restrictions that often apply in public offerings.
