space x The company is allocating a smaller portion of its blockbuster initial public offering shares to retail investors than expected, according to people familiar with the matter.
The company, led by Elon Musk, plans to direct a low 20% of the offering to individual buyers, including retail investors overseas, online brokerages and private bank customers, the people said.
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This allocation is lower than previous expectations that around 30% of deals would be reserved for retail investors.
According to the person, the allocation decision is almost final and is subject to change.
SpaceX is scheduled to begin trading on Friday in what will be one of the largest initial public offerings in history. The company’s valuation is expected to be around $1.8 trillion.
The drop in allocations suggests strong institutional demand for the stock as investors compete for access to some of the most talked-about IPOs in recent years. Even with a smaller allocation, the retail tranche would still be one of the largest U.S. IPOs of its size in history.
