SpaceX IPO Draws Orders for Multiple Times the Shares Available

SpaceX’s initial public offering has attracted demand from institutional investors for multiple times the available shares, according to people familiar with the matter, as the Elon Musk-led rocket, satellite and artificial intelligence firm’s debut gets closer.

Banks leading the IPO told investors early Tuesday the offering has seen additional demand from meetings with management, said the people, who asked not to be identified because the information is private.

The number of orders for shares has increased since Monday, the people said. Banks said the offering was well oversubscribed , Bloomberg News reported at the time.

The banks have separately indicated that allocations to the institutional portion of the offering will be concentrated with large long-only investment management firms, some of the people said. Multiple institutional investors placed orders for about $10 billion or more of shares each, Bloomberg News reported.

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A representative for SpaceX didn’t immediately respond to a request for comment.

The banks are expected to stop taking orders from institutional investors after the market closes in New York at 4 p.m. on Wednesday, people familiar with the matter have said.

SpaceX’s IPO is set to price June 11 and trade the following day. The company is offering 555.6 million shares at a fixed price of $135 each, which would raise about $75 billion, and value it at about $1.8 trillion.

Retail investors can still submit orders for SpaceX shares on some platforms beyond the Wednesday deadline. The company is allocating as much as 30% of the offering to retail, Bloomberg News has reported.

The IPO is expected to rank as the biggest ever, topping Saudi Aramco’s $29.4 billion debut in 2019. OpenAI, whose AI models compete with those from SpaceX’s xAI business, filed confidentially for a listing on Monday, following Anthropic PBC last week. Together with SpaceX, the three companies could add $3.6 trillion of market value to US exchanges, according to Bloomberg calculations.

Read More: OpenAI Joins a Massive AI IPO Pipeline Now Worth $3.6 Trillion

Later Tuesday, Morgan Stanley is hosting about 300 institutional investors at the bank’s New York headquarters for meetings with SpaceX management including President Gwynne Shotwell and Chief Financial Officer Bret Johnsen, Bloomberg News has reported.

Goldman Sachs Group Inc., Morgan Stanley, Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. are leading the deal, with 18 other banks participating. Shares in the company, which is formally known as Space Exploration Technologies Corp. will trade on Nasdaq and Nasdaq Texas under the symbol SPCX.