SpaceX IPO Attracts Over $100B Retail Orders, Lifts Underwriting Fees for Goldman Sachs
GS•Retail investors have submitted over $100B in orders for SpaceX’s $75B IPO at $135 per share, with at least 20% of shares reserved for individual bidders. Sovereign wealth funds placed orders exceeding $1B each, boosting potential underwriting fees for lead banks such as Goldman Sachs.
1. Retail Demand Overwhelms Offering
Retail investors submitted more than $100B in buy orders for SpaceX’s IPO, which will sell 555.6 million shares at $135 per share to raise approximately $75B. With at least 20% of shares reserved for individual bidders, a significant portion of retail demand is likely to remain unfilled.
2. Institutional Orders and Sovereign Funds
Around 1,000 institutional investors participated, including Saudi Arabia’s Public Investment Fund, Kuwait Investment Authority and Qatar Investment Authority, each placing orders exceeding $1B. International allocations were set below 10% of the deal, though Japan’s allotment was recently raised to $2.5B.
3. Implications for Underwriters
Lead banks such as Goldman Sachs stand to earn substantial underwriting fees from the record $75B raise, while the offering terms of $135 per share and 555.6 million shares remain unchanged. The strong demand underscores confidence in the valuation and structure of the IPO.
