STORY: SpaceX outlined details of its highly anticipated initial public offering at a meeting with its team of bankers Monday (April 6) night, telling them it plans to set aside a large portion of shares for retail investors.
According to two sources, Chief Financial Officer Bret Johnsen told the bankers that retail participation will be a critical part of the IPO and a bigger share than any IPO in history.
He said the approach is intentional, aimed at recognizing people that have been incredibly supportive of the company and its founder, Elon Musk.
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Reuters reported last month that SpaceX is rewriting the IPO playbook with a large retail portion in the offering.
The IPO is expected to be the largest ever.
The rocket maker is seeking to raise $75 billion, a move that could value the company at up to $1.75 trillion.
The firm is set to begin its investor roadshow the week of June 8, when executives and bankers start presenting the deal.
On June 11, it expects to host about 1,500 retail investors at what sources described as a major investor event.
Everyday retail investors in the U.S., UK, EU, Australia, Canada, Japan and Korea would get the opportunity to take part, a source said.
The final structure of the deal, including the size of the retail allocation, is expected to be determined closer to the IPO launch.
The sources also said SpaceX plans to make its IPO prospectus public in late May.
The company did not immediately respond to a request for comment.
Morgan Stanley, Bank of America, Citigroup, JPMorgan and Goldman Sachs are leading the deal, along with 16 other banks.
