As the Elon Musk-led commercial space flight giant SpaceX gears up for its IPO, here’s how you can participate in the listing via platforms like Robinhood Markets Inc. (NASDAQ:HOOD), E-TRADE and SoFi Technologies Inc. (NASDAQ:SOFI).
SpaceX IPO: What Retail Investors Need To Know
According to a Reuters report in March that cited anonymous sources familiar with the matter, SpaceX was reportedly mulling allocating up to 30% shares for retail investors, which, according to the report, was over three times the typical size of a retail offering.
SpaceX, in its prospectus, said that in addition to the retail allocations of shares via the IPO, the company will also be offering a certain amount of shares via platforms like Charles Schwab & Co. Inc. (NYSE:SCHW), Fidelity Brokerage Services LLC and Fidelity Capital Markets, in addition to Robinhood and Sofi.
Robinhood and Sofi
In a post on X on Sunday, influencer and Tesla investor Sawyer Merritt shared information about the terms and conditions for investing in the IPO via the listed platforms in the prospectus.
For Robinhood and Sofi, there was no minimum account balance required to participate in the IPO. However, Robinhood users participating must have enough balance to cover the amount of the shares requested by the users and have an individual brokerage account.
Robinhood users also need to ensure that the IPO access option is enabled on the account. Do note that requesting shares does not guarantee allocation and that prospective buyers on Robinhood would place a “conditional offer to buy” (COB) on the shares.
“The number of shares you request factors into how many you actually get, but it doesn’t affect the likelihood that you’ll get any allocation,” the post said.
For Sofi, investors need to have an active “Self-Directed Invest” account and request shares once the IPO kicks off via an “indication of interest” in the IPO. Users would also be required to complete an IPO suitability questionnaire before participating, the post said.
E-TRADE Users
Morgan Stanley-backed (NYSE:MS) E-TRADE users, on the other hand, require users to have an active E*TRADE account where “Individual, Joint and IRAs” would all be “eligible” for the IPO. Users would also need to complete an investor profile questionnaire, the post said.
E-TRADE users would also need to have funds that can cover the amount of shares requested via a conditional offer to buy. The post did outline that many COBs could be denied allocation as demand for SpaceX would be “very high” and that the allocations could “be significantly smaller than the size of shares requested in a customer’s COB.”
Charles Schwab, Fidelity Conditions
Retail investors wanting to participate in the IPO via the Charles Schwab platform would require a minimum of $100,000 in funds, including individual retirement arrangements (IRAs), excluding 401 (k) s, and fill out an eligibility questionnaire to participate.
Individuals would be required to submit a Conditional Offer To Participate (COTP) before the IPO. Investors could also view the SpaceX IPO Prospectus and indicate the number of shares they would require. Once the IPO kicks off, investors will need to affirm their COTPs, according to Merritt.
Charles Schwab didn’t immediately respond to Benzinga‘s request for comment.
On the other hand, Fidelity users require a minimum of $500,000 in funds, with the same conditions as Charles Schwab and would need to submit an indication of interest with the maximum number of shares required by customers. “You must have adequate funds available to settle the purchase,” the post said.
Goldman Sachs Leads The IPO
SpaceX has picked investment bank Goldman Sachs Group Inc. (NYSE:GS) as the lead underwriter for the commercial space flight company’s upcoming IPO, with investment bank Morgan Stanley (NYSE:MS) also slated to be in a key position ahead of the IPO.
On the other hand, BlackRock Inc. (NYSE:BLK) is also considering a multi-billion-dollar investment in the upcoming IPO, with the company reportedly weighing an investment of between $5 billion and $10 billion in the Musk-led enterprise.
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Disclaimer – Investment terms and conditions could be subject to change depending on each platform and case. Please refer to or contact the specific trading platform to know more.
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