Record US$1.75 trillion SpaceX float tests appetite for Musk among Canadian money managers
Elon Musk is preparing to float SpaceX at a valuation of about US$1.75tn while carving out an IPO structure that gives retail investors an unusually large share of the deal.
According to an exclusive by Reuters, Musk is weighing a plan to give individual investors up to 30 percent of SpaceX’s IPO, about three times the usual 5 percent–10 percent retail allocation.
The planned structure leans on his “rabid fan base” and other loyal backers to help steady the stock after its debut.
As per Reuters, Musk is taking an unusually hands‑on role in shaping both who owns SpaceX and how its shares trade once public.
SpaceX chief financial officer Bret Johnsen relayed the plan to Wall Street, pairing the oversized retail allocation with a tightly controlled approach to choosing bankers.
People familiar with the process told Reuters that SpaceX is assigning firms narrowly defined roles based on personal relationships and past ties, and cautioned that the plan is not final and could change.
Reuters reported that SpaceX has created a “lane” structure that assigns banks to specific investor pools and regions.
Morgan Stanley is expected to handle smaller‑ticket retail investors through its E*Trade platform.
Bank of America will focus on high‑net‑worth individuals and family offices in the US, while UBS will market to similar investors internationally.
Citi is coordinating international retail and institutional distribution, working with regional banks to reach individual investors abroad, according to Reuters.
Other banks have been given regional mandates, with Mizuho covering Japan, Barclays handling the UK, Deutsche Bank in charge of Germany and Royal Bank of Canada covering Canada.
Musk handpicked Bank of America to focus on domestic retail distribution.
SpaceX did not respond to a request for comment and Bank of America declined to comment, Reuters said.
According to the Financial Times, SpaceX has informed investors it is targeting an IPO of about US$75bn, up from a prior goal of US$50bn.
The outlet reported that executives added roughly US$25bn to the planned raise in a recent investor meeting.
The paper said Musk is now targeting a valuation of about US$1.75tn for SpaceX and noted that only five publicly traded US companies have a higher market capitalisation.
The Financial Times reported that Bank of America, Goldman Sachs, JPMorgan Chase and Morgan Stanley have been lined up for lead roles.
SpaceX has yet to file its draft prospectus with US regulators but could do so in the next few days as it aims to list by June, to coincide with Musk’s birthday and the alignment of Jupiter and Venus.
Bankers are also debating lock‑up terms.
As per the Financial Times, some are toying with allowing existing shareholders to sell on day one, scrapping the usual 180‑day lock‑up, while others favour a staggered lock‑up that would let early investors sell down over several months.
One investor close to a banker described Musk’s influence over size and timing as “highly unusual” and told the Financial Times, “It’s kind of scary how Elon is setting the price, it’s not being done formally.”
Demand from individual investors is expected to be strong.
Reuters reported that interest ranges from wealthy family offices that have backed SpaceX for years to smaller investors drawn to Musk’s companies.
According to Reuters, Rowan Taylor, managing partner of Liberty Hall Capital Partners, said the SpaceX IPO feels like “one of those lifetime moments” when investors think “they just have to get in,” comparing the hype to Google’s IPO 20 years ago.
He called the demand “a statement about investor confidence in Elon Musk,” and Reuters reported that SpaceX is betting these investors are less likely to engage in “pop‑and‑dump” trading.
The wider space sector has already reacted to the IPO prospects.
According to CNBC, space stocks rallied after a report that SpaceX could seek a listing as soon as this week.
The broadcaster reported that AST SpaceMobile and Rocket Lab each jumped about 10 percent, Firefly Aerospace climbed 16 percent and York Space rose 5 percent.
Citing The Information, CNBC said SpaceX’s debut could raise more than US$75bn and reiterated that it may seek a US$1.75tn valuation.
SpaceX acquired Musk’s xAI last month in a deal valuing the combined company at US$1.25tn.
SpaceX’s operating scale and ambitions are central to that story.
CNBC reported that SpaceX runs the Starlink constellation with more than 9,500 satellites in orbit.
In January, Musk proposed a larger project to launch 1m satellites, an effort scientists staunchly oppose over environmental threats.
