SpaceX's upcoming initial public offering has generated immense interest, but the wealth from the $75 billion raise is expected to primarily benefit existing shareholders, employees, and major institutional investors. The company, which already operates rockets and satellites, is also the first of the big three U.S. AI startups to go public. Despite efforts to include more retail investors, the IPO's structure favors those with significant capital and access to the market.
The SpaceX IPO is unique in that it has set aside 30 percent of its float, or about $22.5 billion in shares, for retail investors. This is much higher than the typical 5 to 10 percent reserved for individual investors in most IPOs. However, even with this increase, the number of shares available to the public is limited, and the demand from retail investors is expected to be massive. Bloomberg reported that SpaceX has received $100 billion in orders from retail investors alone, indicating the high level of interest.
The company's bankers will ultimately decide who gets to purchase shares at the IPO price of $135 per share, and how many. The odds of an individual investor securing a significant number of shares are extremely low. According to Campbell Harvey, the average investor is likely to receive only a small portion of the company, which he describes as 'a few crumbs.' The IPO's structure and the company's mature status mean that most retail investors may not benefit significantly from the offering.
Source: wired
