Elon Musk’s SpaceX is preparing for what could be the largest IPO in history and sources say Morgan Stanley’s E*Trade platform is set to handle most of the retail allocation. The move sidelines popular retail brokerages Robinhood and SoFi, leaving investors to watch the company’s next move closely.
According to Reuters, Morgan Stanley, which serves as the main underwriter for the SpaceX initial public offering, plans to distribute most of the SpaceX shares through E*Trade. SpaceX will allocate up to 30% of its shares for retail investors, according to industry sources, although a significant portion will go to private wealth and high-net-worth clients.
SpaceX has established itself as a leader in aerospace innovation and private space travel. The upcoming IPO will enable retail investors to join space exploration and technological development efforts scheduled for later this year.
The most talked-about initial public offering is apparently not drawing in Robinhood Markets (NASDAQ: HOOD) or SoFi Technologies (NASDAQ: SOFI), despite their appeal to everyday investors. Robinhood, with its straightforward trading interface for stocks and digital currencies, and SoFi, a fintech firm that recently became the first US bank with a national charter to provide crypto trading to retail customers, are both sitting this one out.
The news hit the markets, with HOOD down 2% to $64.88 and SOFI down 1% to $150.07 at press time. Analysts note that missing out on the SpaceX IPO may limit these brokers’ exposure to one of the most anticipated public offerings in decades.
SpaceX’s decision to route retail shares through E*Trade highlights the continued dominance of established Wall Street brokerages in major IPOs. For retail investors, the upcoming offering presents a rare opportunity to gain exposure to a high-profile space technology leader. Meanwhile, Robinhood and SoFi face a reminder that access to headline-grabbing IPOs is still concentrated among traditional financial institutions.
Also Read: Is Elon Musk About to Become the First Trillionaire Through a SpaceX IPO?