SpaceX to Allocate 30% of IPO to Retail Investors
SpaceX will allocate roughly 30 percent of its IPO shares to retail investors. Brokerage policies restrict investors who sell shares shortly after trading begins from participating in future offerings.
CoinDeskSpaceX plans to allocate about 30 percent of its IPO shares to retail investors, a larger portion than the typical 5 to 10 percent. Reports indicate demand for the offering is approaching four times the number of shares available. Brokerages maintain their own policies on IPO flipping, the practice of selling newly allocated shares shortly after trading begins.
These policies aim to keep demand stable after an offering starts.
Robinhood restricts customers who sell allocated IPO shares within 30 days from new IPO allocations for 60 days. SoFi imposes a 180-day suspension on first violations and may charge a $50 fee for sales before the 120th day. Fidelity may flag customers who sell within the first 15 calendar days.
E*Trade can limit participation in upcoming offerings for sales within 30 days. Charles Schwab maintains no firm anti-flipping policy.
Jay Ritter, Director of The IPO Initiative at the University of Florida, said brokerages adopted these policies because underwriters want demand to remain strong after trading begins. Philip DeAngelo of Focused Wealth Management said clients have asked many questions about the SpaceX offering.
Gina Martin Adams of HB Wealth noted that many IPOs deliver muted returns after an initial jump. Ritter said there is no guarantee a stock that rises on the first day will continue to rise. U.S. IPO activity fell from 397 offerings raising $142.4 billion in 2021 to 71 in 2022 before recovering to 202 offerings in 2025.
OpenAI has disclosed confidential plans related to a potential IPO, while investors continue to speculate about offerings from other AI companies.
