Elon Musk is considering donating 30% of SpaceX’s proceeds to investors, according to a Reuters reportA large break from 5% to 10% distribution is observed in many lists.
The move reflects Musk’s strategy of leaning on loyal supporters and investors to launch the product after what could be one of the biggest IPOs in history.
This structure also gives Musk greater control over how shares are distributed. Instead of allowing banks to compete too much, SpaceX is giving companies positions in all sectors and business sectors. Bank of America is expected to focus on US net worth clients, while Morgan Stanley will handle smaller retail orders through its E*TRADE platform. Some banks including UBS and Citi have distribution operations around the world.
The company is betting that its strong sales following, built through Musk’s history with Tesla and Starlink, will translate into long-term ownership rather than short-term sales. Demand is expected to be strong, from family offices to small investors who have followed SpaceX in the private markets for years.
According to a A Bloomberg reportSpaceX plans to hold a public hearing in April as part of initial IPO discussions, with plans to file privately as early as this month. The offering could rise to $75 billion, taking the company to about $1.75 trillion and making it one of the world’s largest listed companies.
At the same time, revisions are being made to all of Musk’s creations ahead of the lists. The Wall Street Journal report said X has cut staff and eliminated key positions following the merger with xAI. The changes are aimed at reducing costs and streamlining revenue streams as the combined entity consolidates operations ahead of the IPO.
SpaceX has not finalized the timing or scope of the offering, and the design is still in flux. However, the high degree of fragmentation of the market and the tight control of the bank show an inconsistent process that could change the way large IPOs work.
