Elon Musk-owned SpaceX is just a day away from its initial public offering (IPO), as Wall Street prepares 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 the shares to retail investors. This indicates that the majority of orders will remain unfulfilled.
The rocket-making company aimed to raise $75 billion at a valuation of $1.75 trillion by selling around 555.6 million shares. It was revealed that the price was set at a flat $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 increased Japan’s allocation from $2 billion to $2.5 billion.
Following SpaceX’s tour, which began last Thursday, operations are expected to begin on Friday.
SpaceX aims to “build the infrastructure of the future,” according to its 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 extend the light of consciousness to the stars.”
How much could investors earn?
Although it is impossible to predict exactly how much investors could earn from SpaceX shares, the strong demand for the IPO suggests that many expect the share price to rise after trading begins.
If the stock price rises 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.
