SpaceX IPO: Fidelity unveils way for retail investors to buy shares
Fidelity Investments on Thursday outlined how its brokerage customers can seek shares in the highly anticipated initial public offering of SpaceX (SPCX), giving retail investors a potential path into what could become the largest stock market debut in history.
The brokerage published detailed instructions for clients interested in participating in the offering, including signing up for IPO alerts, reviewing the company's prospectus, submitting an indication of interest and later confirming that interest after the IPO is priced. Fidelity customers can submit requests ranging from one share to as many as 1 million shares, though allocations will depend on demand and the number of shares the firm receives from underwriters.
The guidance comes as investor interest in Elon Musk's rocket and satellite company continues to build ahead of its planned market debut. SpaceX (SPCX) has become one of the world's most valuable private companies through its launch business, Starlink satellite internet network and government contracts, making its IPO one of the most closely watched offerings in years.
SpaceX (SPCX) is seeking to raise approximately $75 billion through the sale of 555.6 million Class A shares at $135 each. The company, which plans to trade under the ticker symbol "SPCX" on Nasdaq and Nasdaq Texas, would be valued at roughly $1.77 trillion at the proposed offering price, placing it among the world's most valuable public companies.
For investors, Fidelity's announcement highlights the rare opportunity for individual investors to potentially receive shares at the IPO price rather than buying in the open market after trading begins. Historically, highly sought-after IPOs often experience sharp price swings during their first days of trading, meaning investors who receive allocations can gain access at a price unavailable once market demand takes over.
Fidelity said it intends to allocate shares as broadly as possible among customers who confirm their interest. However, the firm warned that demand for the SpaceX (SPCX) offering could exceed the supply of shares available to Fidelity. In that case, allocations would be determined through a lottery system designed to distribute shares fairly among eligible clients. Investors may receive fewer shares than requested or none at all.
Customers who submit an indication of interest will be able to modify their requests until the offering period closes. Once the registration statement becomes effective and the IPO is priced, investors must confirm their interest to remain eligible for an allocation. Fidelity said allocations are typically completed before the market opens on the day after pricing.
The brokerage also reminded customers of its policy against "flipping," or selling IPO shares shortly after they begin trading. For the SpaceX (SPCX) offering, Fidelity said shares sold within the first 15 calendar days would be considered flipping. Customers who repeatedly violate the policy could lose eligibility to participate in future IPO allocations through the firm.
Investors who do not receive an allocation will still be able to purchase SpaceX (SPCX) shares once the stock begins trading on the public market, although the share price may differ significantly from the IPO offering price depending on market demand. Fidelity cautioned that newly public stocks often experience elevated volatility during their first days of trading.
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