Elon Musk-owned SpaceX is just one day away from its initial public offering (IPO) as Wall Street braces for the largest corporate valuation in history.
The Space technology giant has received orders worth $70 billion from retail investors; however, SpaceX wants to allocate only 20% of shares to the retail investors. This indicates that most of the orders will remain unmet.
The rocket making company aimed to raise $75 billion at a $1.75 trillion valuation by selling around 555.6 million shares. The price was revealed to be set at fixed $135 per share.
SpaceX plans to sell approximately 4.2% of its equity 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 raised Japan’s allocation from $2 billion to $2.5 billion.
Following SpaceX’s roadshow, which began last Thursday, trading is expected to commence 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?
Though it is impossible to predict exactly how much investors could earn from SpaceX shares, strong demand for the IPO suggests many expect the stock price to rise after trading begins.
If the share price climbs from its IPO price of $135 to $150, investors would gain around 11%. A rise to $200 would generate a return of about 48%, while a jump to $270 would double an investor’s money.
