SpaceX IPO May Allocate 30 Percent to Retail Investors

Elon Musk is reportedly preparing to rewrite the initial public offering (IPO) playbook by allocating up to 30% of SpaceX shares to retail investors. This proposed allocation is at least three times the typical retail slice, as the billionaire looks to his dedicated fan base and loyal backers to provide a stabilizing force for the stock following its market debut. The structure of the offering, which is expected to be one of the most significant in years, departs from standard Wall Street practices and underscores a determination to shape the company's ownership and trading dynamics.

The plan, relayed to financial institutions by SpaceX Chief Financial Officer Bret Johnsen, pairs the oversized retail allocation with a hands-on approach to selecting underwriters. Rather than allowing firms to compete broadly, the company is assigning narrowly defined roles based on personal relationships and historical ties. As part of this effort, Elon Musk has reportedly handpicked Bank of America Corporation to focus on domestic retail distribution within the United States.