Retail investors are getting a shot at one of the hottest IPOs in years.
Elon Musk’s SpaceX said a portion of shares in its blockbuster public offering will be sold directly through trading platforms including Robinhood, Fidelity and Charles Schwab, giving everyday traders access that has traditionally been reserved for Wall Street’s biggest clients, according to a prospectus with the Securities and Exchange Commission released Wednesday
The move marks a departure from the traditional IPO process, where retail investors often receive limited allocations and typically end up buying shares only after trading begins, sometimes at sharply higher prices. SpaceX said retail buyers on those platforms would receive shares at the same IPO price and at the same time as institutional investors and other large purchasers. Musk’s rocket and satellite company officially unveiled plans this week to go public under the ticker SPCX on Nasdaq.
The company confidentially filed with regulators in April, and CNBC previously reported that SpaceX is expected to begin a tour presenting its plans to investors — known as a roadshow — on June 8. Founded in 2002, SpaceX has evolved from an ambitious rocket startup into one of the world’s most valuable private companies. The company became NASA’s primary launch partner after the retirement of the space shuttle program and has built businesses spanning reusable rockets, national-security and defense contracts and its Starlink satellite internet network.