SpaceX’s Falcon 9 rocket and Crew Dragon sit on Launch Pad 39A at NASA Kennedy Space Center in preparation for the first fully civilian mission into orbit on September 15, 2021 at Cape Canaveral, Florida.
Joe Radle | Getty Images
Retail investors are taking a chance on one of the most talked-about IPOs in recent years.
Elon Musk’s SpaceX said some of the shares in its blockbuster public offering will be sold directly through trading platforms such as Robinhood, Fidelity and Charles Schwab, giving everyday traders access that has traditionally been limited to big Wall Street clients, according to a Securities and Exchange Commission prospectus released Wednesday.
The move marks a departure from the traditional initial public offering process, where retail investors often receive limited allocations and typically only buy shares after trading begins, sometimes at significantly higher prices. SpaceX said retail buyers on these platforms will receive shares at the same IPO price at the same time as institutional investors and other large buyers.
Musk’s rocket and satellite company this week formally announced plans to list on the Nasdaq under the ticker SPCX. The company filed a confidential regulatory filing in April, and CNBC previously reported that SpaceX plans to begin a tour (known as a roadshow) to introduce the plan to investors on June 8th.
Founded in 2002, SpaceX has grown from an ambitious rocket startup to one of the world’s most valuable private companies. The company became NASA’s primary launch partner after the end of the Space Shuttle program and has built a business across reusable rockets, national security and defense contracts, and the Starlink satellite internet network.
While the company’s fleet of about 10,000 satellites is a key growth driver, Musk has also expanded into artificial intelligence through xAI, adding another business line with high-growth potential to the broader corporate umbrella.
For retail investors, access may still be subject to limitations.
SpaceX said purchases through intermediary platforms will continue to be subject to each company’s own requirements and terms. IPO stock allocations are often limited, and demand for SpaceX could significantly exceed available supply.
—CNBC’s Lora Kolodny and Jordan Novet contributed reporting.
