Fidelity reduces minimum account balance requirement for SpaceX IPO participation, expanding access to retail investors amid high demand.
Fidelity Investments has lowered its minimum brokerage account balance requirement for investing in the upcoming SpaceX IPO from $500,000 to $2,000. The change applies to the June 12 offering, which could raise $75 billion and value the company at $1.8 trillion, making it the largest IPO in history.
Previously, Fidelity restricted IPO access to clients with at least $500,000 in assets to shield smaller investors from volatility. SpaceX has allocated 30% of its shares for retail investors, up from the typical 10%, prompting the policy adjustment. Analysts question the valuation, citing concerns over hype and market reach estimates.
The move reflects broader efforts by Wall Street to broaden retail participation in high-profile IPOs, though critics warn of potential risks for less experienced investors.