Spacex IPO at $135 — a guide to buying shares via your broker

SpaceX priced its initial public offering at $135 a share, giving the rocket and satellite company a valuation north of $250 billion and setting the stage for one of the largest U.S. market debuts in history. The offering, expected to begin trading as soon as next week, opens a rare window for retail investors to buy into a company that has long been the exclusive domain of institutional and accredited investors.

"Retail investors have been clamoring for SpaceX access for years, and now they finally have a clear path through their brokerage accounts," said Tom Brennan, an IPO and M&A analyst at Edgen. "The key is understanding which brokers have allocation and how the process works before the first trade prints."

SpaceX plans to offer roughly 185 million shares at the $135 price, raising about $25 billion in what would be the biggest U.S. IPO on record. The company, led by Chief Executive Officer Elon Musk, has grown from a startup launching rockets from a Pacific atoll to a dominant force in space transportation and satellite communications, with its Starlink business generating an estimated $11 billion in revenue last year. The $135 price values SpaceX at roughly 23 times trailing revenue, a premium to legacy aerospace peers but below high-growth technology companies.

The IPO represents a watershed moment for individual investors who have watched SpaceX's valuation climb from $36 billion in 2021 to more than $250 billion in private secondary markets. Most major online brokerages — including Charles Schwab, Fidelity, Robinhood and E*Trade — are expected to offer shares to their clients, though allocation sizes will vary based on account type and demand. Investors should be prepared for significant volatility in early trading, as the limited float and intense retail interest could produce sharp price swings. The last time a similarly hyped consumer-facing company went public — Facebook in 2012 — shares dropped about 20 percent in the first few days before eventually becoming one of the world's most valuable stocks.

How to participate

The process for buying SpaceX shares at the IPO price differs from purchasing a stock already trading on an exchange. Investors typically need to indicate interest through their brokerage's IPO access program, often requiring a minimum account balance or trading activity threshold. Robinhood, which pioneered retail IPO access through its IPO Access feature, allows customers to request shares at the offering price, though allocations are not guaranteed and are typically prorated based on demand. Fidelity and Schwab similarly offer IPO participation to eligible clients, with allocations determined by the underwriting syndicate led by Morgan Stanley, Goldman Sachs and J.P. Morgan.

Once shares begin trading on the Nasdaq, retail investors who did not receive IPO allocations can buy shares in the open market like any other stock. The risk, however, is that the stock could open significantly above the $135 IPO price — a phenomenon known as the "IPO pop" — or below it if demand disappoints. SpaceX's roadshow, which began meeting with potential investors Thursday, will be closely watched for signs of institutional demand. The company faces unique risks, including the outspoken nature of Musk, whose social media posts on X have previously moved markets, and the capital-intensive nature of its Starship rocket program, which has yet to generate revenue.

For investors weighing whether to buy at the IPO price or wait for secondary market trading, the calculus comes down to risk tolerance. IPO shares carry the potential for a first-day pop — Tesla shares surged about 40 percent on their 2010 debut — but also the risk of immediate losses if the market re-prices the stock lower. The broader lesson from past high-profile IPOs is that patience often rewards disciplined investors: Facebook, Amazon and Google all traded below their IPO prices at some point in their first year before delivering substantial long-term returns.

This article is for informational purposes only and does not constitute investment advice.