Investment giant BlackRock Inc. has placed an order to purchase at least $5 billion worth of SpaceX stock ahead of the aerospace company's market debut, according to a report by The Wall Street Journal citing people familiar with the matter. Other major asset management firms have submitted orders of similar scale. Elon Musk's Hawthorne, California-based rocket and satellite company is aiming to raise $75 billion in a single offering at a valuation of around $1.75 trillion, with pricing expected to finalize Thursday evening before officially listing shares on the Nasdaq Friday morning under the ticker symbol SPCX. The multibillion-dollar institutional orders come amid extraordinary investor demand, with retail and individual buyers flooding bankers with requests totaling well over $70 billion, according to sources cited by the Journal, while Bloomberg reported retail orders have crossed $100 billion. SpaceX represents what is poised to become the largest initial public offering in history.
BlackRock and Institutional Investors Submit Multibillion-Dollar SpaceX Orders
BlackRock's $5-billion order is joined by similarly massive requests from other prominent asset managers, sovereign wealth funds, and family offices, according to the Wall Street Journal report. One single family office reportedly sought more than $1 billion in shares. The scale of BlackRock's single order roughly equals the total $5.55 billion raised by artificial intelligence chipmaker Cerebras Systems earlier this month, which had previously held the title of the year's largest IPO.
Retail Demand Exceeds $70 Billion as Oversubscription Drives Allocation Cuts
Retail and individual buyers have flooded bankers with requests totaling well over $70 billion, sources told the Journal. Bloomberg reported retail orders have crossed $100 billion. The staggering oversubscription suggests that investors will face steep cuts to their final allocations, a common occurrence when demand vastly outstrips available supply. CEO Elon Musk has indicated he intends to steer as much as 30% of the total allocation to everyday individual buyers. Musk bypassed the standard Wall Street roadshow of adjusting prices based on investor feedback, instead setting a strict, non-negotiable price of $135 per share.
Senator Elizabeth Warren Requests SEC Delay of SpaceX IPO
Sen. Elizabeth Warren (D-Mass.) sent a 12-page letter to the Securities and Exchange Commission requesting a formal delay of the IPO. Warren raised concerns over investor protection, corporate transparency, and Musk's unprecedented retention of 85% of the company's voting power.
SpaceX Finalizes Pricing Thursday Evening Ahead of Friday Nasdaq Listing
Bankers closed the order book on Wednesday and are currently finalizing allocations ahead of Friday's opening bell. SpaceX is expected to finalize its pricing Thursday evening before officially listing its shares on the Nasdaq Friday morning under the ticker symbol SPCX.
FAQ
What is the size of BlackRock's SpaceX IPO order?
BlackRock Inc. has placed an order to purchase at least $5 billion worth of SpaceX stock ahead of the company's market debut, according to a Wall Street Journal report citing people familiar with the matter. Other major asset management firms have submitted orders of similar scale.
When does SpaceX list on the Nasdaq?
SpaceX is expected to finalize its pricing Thursday evening before officially listing its shares on the Nasdaq Friday morning under the ticker symbol SPCX. Bankers closed the order book on Wednesday and are currently finalizing allocations ahead of Friday's opening bell.
How much retail demand has the SpaceX IPO received?
Retail and individual buyers have flooded bankers with requests totaling well over $70 billion, according to sources cited by the Wall Street Journal. Bloomberg reported retail orders have crossed $100 billion. CEO Elon Musk has indicated he intends to steer as much as 30% of the total allocation to everyday individual buyers.
