Elon Musk-owned SpaceX is just a day away from its initial public offering (IPO) as Wall Street prepares for the largest company valuation in history.
The space technology giant received orders worth $70 billion from retail investors; However, SpaceX wants to allocate only 20% of the shares to retail investors. This indicates that most orders will remain unfulfilled.
The rocket manufacturing company aimed to raise $75 billion at a valuation of $1.75 trillion by selling about 555.6 million shares. The price was revealed to be fixed at a flat $135 per share.
SpaceX plans to sell about 4.2% of its shares through the IPO, while Elon Musk and other insiders will retain the remaining 95.8%.
It has reportedly decided to allocate 10 percent of the shares to international orders. The company increased Japan’s allocation from $2 billion to $2.5 billion.
After the SpaceX roadshow, which began last Thursday, discussions are expected to begin on Friday.
SpaceX aims to “build the infrastructure of the future,” according to the newly launched website.
The spaceflight giant wrote: “We are building the systems and technologies necessary to provide global connectivity on Earth and beyond, to understand the true nature of the universe, and to extend the light of consciousness to the stars. »
How much could investors earn?
While it’s impossible to predict exactly how much investors could earn from SpaceX stock, high demand for the IPO suggests many expect the stock price to rise after trading begins.
If the stock price rose from its IPO price of $135 to $150, investors would gain about 11%. A rise to $200 would generate a return of around 48%, while a jump to $270 would double an investor’s money.
