This is a big countdown for a significant event. SpaceX plans to launch its initial public offering (IPO) on Friday, June 12th, and investors are eagerly anticipating what could be the largest stock debut ever.
Meanwhile, other companies, like OpenAI, are hustling to get ready for their IPOs.
Investors can purchase SpaceX stock through five different brokerages: Charles Schwab, E-Trade, Fidelity, Robinhood, and SoFi, each with its own set of criteria for allocating shares.
The IPO will take place on the Nasdaq Exchange, listed under the ticker SPCX.
Elon Musk is taking a rather unusual approach by bypassing the traditional IPO price range. SpaceX aims for a set opening price of $135, looking to raise $75 billion with a valuation of $1.75 trillion, though this might shift before the IPO date.
Interested in buying some of the 555 million shares in the SpaceX IPO? Here’s a quick rundown on how to go about it.
SpaceX IPO Investor Process
While each brokerage has its own requirements for IPO investments, there are some general steps to follow:
- First off, you’ll likely need to fill out an investor profile.
- A prospectus with details about the stock and company will be provided to you.
- Then, you make a conditional offer by stating how many shares you want (usually a minimum of 100) and the maximum price you’re willing to pay. However, keep in mind, this doesn’t guarantee you’ll get the shares.
- Lastly, ensure you have enough funds in your investment account to cover the purchase.
The public launch of Elon Musk’s venture into rockets and AI promises to be historic.
Broker Requirements for SpaceX IPO
Here’s what we know about what each brokerage requires for investing in the SpaceX IPO. This information might be readily available, but it’s wise to check with your chosen brokerage for details:
- Charles Schwab requires a minimum account value of $100,000.
- E-Trade has no minimum portfolio size but you must meet regulatory requirements, be a U.S. resident, have an active account, and pass an investor profile questionnaire.
- Fidelity needs you to have a personal brokerage account with at least $500,000, excluding certain accounts, and membership in a premium or private client group.
- Robinhood uses a random selection for IPO shares for those who apply. Regular accounts can participate, but retirement accounts are not eligible.
- SoFi requires you to be a member and have a self-directed investing account, without any minimum balance necessity.
Interestingly, Robinhood warns that IPOs are risky and may not suit every investor.
If you don’t qualify for IPO shares, don’t worry—you might still gain exposure to SpaceX through 401(k)s or other index funds. New regulations allow for a shorter waiting period for IPO stocks to make it into index funds.
However, SpaceX has to wait its turn. S&P Dow Jones Indices confirmed it will maintain its rules and not allow fast-track entry for SpaceX or other major IPOs, meaning SpaceX won’t be included in the S&P 500 for at least a year after its public launch.
