SpaceX IPO, which is expected to fetch a $1.75 trillion valuation, has set off a frenzy among retail investors clamoring for a share of Elon Musk's rocket, satellite and AI empire. SpaceX has reportedly earmarked as much as 30 per cent or $22.5 billion in shares for retail investors, a rare move for a blockbuster IPO that is typically dominated by institutional buyers.
Here's what investors need to know about buying shares in the IPO, who may get access and the risks of purchasing the stock once it begins trading.
How Can One Buy SpaceX Shares?
Trading under the symbol SPCX, SpaceX has picked a handful of brokerage firms to distribute shares in the IPO to retail customers in the U.S. Investors typically need to have an eligible brokerage account, meet minimum funding requirements and submit an indication of interest before the IPO is priced. Requirements vary by brokerage and there is no guarantee your order will be filled.
Fidelity lowered its eligibility requirements from holding $500,000 in a Fidelity account to $2,000 just in time for the SpaceX IPO.
• Fidelity Investments: $2,000 account minimum
• Robinhood Markets: $0 account minimum
• SoFi: $0 account minimum
• E*Trade: $0 account minimum
• Charles Schwab: $100,000 account minimum
Brokerages warn against "flipping," or selling IPO shares shortly after a stock begins trading. Investors who sell their stock within two to four weeks of the offering could be restricted from future IPOs.
Can International Investors Buy Shares?
While SpaceX's IPO is being offered to investors in several countries, access varies significantly by market.
International investors also face additional eligibility requirements, limited share allocations, or regulatory restrictions compared with U.S. investors, depending on where they live. Qualified investors in Germany, Denmark, France, the Netherlands, Norway, Spain and Sweden will be able to buy shares once SpaceX's European prospectus is approved by regulators.
Here are the countries where SpaceX said qualified investors might be able to buy its shares, depending on the eligibility requirements in each country.
• Argentina
• Australia
• Brazil
• Colombia
• Denmark
• European Economic Area
• France
• Germany
• India
• Israel
• Malaysia
• Mexico
• The Netherlands
• New Zealand
• Norway
• Peru
• Philippines
• Qatar
• Saudi Arabia
• Singapore
• South Africa
• South Korea
• Spain
• Sweden
• Switzerland
• Taiwan
• Thailand
• United Arab Emirates
• United Kingdom
All of the above mentioned nations impose restrictions on who can buy and some even restrict how they can invest in SpaceX. Check with local authorities on the specific rules.
