SpaceX’s public market debut, expected on Friday, will create remarkable wealth — but only a sliver of investors will reap the bulk of the gains.
Like with many IPOs, most individual investors won’t get in at the offering share price, which usually delivers a first-day pop before fizzling out.
That presents an opportunity for the ultra-rich, who are expected to comprise a large part of the $22.5 billion SpaceX has earmarked for retail investors.
Banks and brokerages — expecting a $500 million windfall in fees from the IPO — are using SpaceX to bolster relationships with high-net-worth clients, The New York Times reported: JPMorgan, Morgan Stanley, and Bank of America have hosted special events centered around the IPO.