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SpaceX IPO explained

Key takeaways

  • The SpaceX IPO may be available to Fidelity customers with as little as $2,000 in a retail brokerage account, lower than typical IPO requirements due to increased share availability.
  • Even if you request shares, final allocation will depend on demand and may use methods like pro rata or fixed distribution.
  • Selling shares within 15 days of the IPO (known as flipping) may restrict your ability to participate in future IPOs through Fidelity.

What is the SpaceX initial public offering (IPO)?

The SpaceX IPO is the first time SpaceX sells its shares (often called stock) to the public, allowing investors to buy into the company. This process is called an initial public offering (IPO). It means the company moves from private ownership to being publicly traded on the stock market. Some shares are allocated to eligible investors as part of the IPO. To participate, eligible customers must follow Fidelity's IPO process for the offering, which can be found in the SpaceX IPO participation guide.

Once the stock begins trading, investors who didn’t participate in the IPO or didn’t receive an allocation can buy shares on a public stock exchange. An IPO gives investors a chance to own part of SpaceX, but there may be limited shares available and added volatility risk when the stock first starts trading.1

Who is eligible to participate in the SpaceX initial public offering (IPO)?

Fidelity is making the SpaceX initial public offering (IPO) available to any customer with a retail brokerage account with $2,000 or more in the account.

Why is SpaceX initial public offering (IPO) eligibility $2,000, but other offerings have a higher dollar requirement?

Most initial public offerings (IPOs) offer retail customers only 5% to 10% of the total offering, which significantly reduces the amount of stock available to our retail clients. SpaceX has decided to reserve a much higher percentage of the offering (up to 30%), which means there should be more shares available to retail clients, which is why we have decided to reduce IPO eligibility for this offering.

If I am allocated shares of SpaceX during the initial public offering (IPO), when can I sell them?

As with any investment, you are free to sell the securities obtained during an initial public offering (IPO) whenever you determine it is appropriate for you. However, if you are allocated shares of SpaceX and you sell within the first 15 calendar days from the start of trading in the secondary market, it will affect your ability to participate in future new issue equity public offerings through Fidelity for a defined period of time. The defined period is as follows:

  • First Flip – Blocked for 6 months
  • Second Flip – Blocked for 1 year
  • Third Flip – Permanently banned by your SSN
The first day clients can sell without being labeled a flipper is the 16th calendar day after the IPO trades.

How will shares of the SpaceX initial public offering (IPO) be allocated?

Fidelity’s goal is to attempt to allocate some shares of the initial public offering (IPO) to all customers who confirm their indication of interest. That said, we anticipate demand on the offering may be significant and could be greater than the supply of shares Fidelity receives from the issuer, which may prevent us from accomplishing our goal. If Fidelity is unable to allocate shares to all customers interested in participating, we will use a “lottery” to allocate shares as fairly and equitably as possible across all interested clients.

How many shares can I attempt to purchase in the SpaceX initial public offering (IPO)?

For the SpaceX initial public offering (IPO), customers have the ability to enter an indication of interest (IOI) quantity with a minimum of 1 share and in increments of 1 share thereafter, up to a maximum of 1,000,000 shares. Customers are free to submit any IOI quantity they would like as long as it falls within the guidelines of the minimum, increment, and maximum for the offering.

How much will SpaceX stock cost per share during the initial public offering (IPO)?

Any customer who participates in the SpaceX initial public offering (IPO) and is allocated shares in the offering will purchase shares at the public offering price, also known as the IPO price. When the offering is launched there will be a price range on the preliminary prospectus. The price range provides an indication of what the offering price may be, but the offer price could be higher or lower than the expected price range.

How can I attempt to buy SpaceX stock during the initial public offering (IPO)?

Eligible customers must follow Fidelity's initial public offering (IPO) process for the offering, which can be found at How to participate in the SpaceX IPO.

Am I guaranteed an allocation of shares of SpaceX if I follow all the steps in the initial public offering (IPO) process?

Like most initial public offerings (IPOs), we anticipate that demand for the SpaceX IPO may be significant. While Fidelity will be receiving a directed allocation from the issuer, the supply of shares may not be commensurate with customer demand in the offering. As a result, clients may receive fewer shares than they requested or in some cases none at all.

Check out our IPO calendar

View initial public offerings (IPOs), download a prospectus, or participate.

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There are risks associated with investing in a public offering, including unproven management, and established companies that may have substantial debt. As such, they may not be appropriate for every investor. Customers should read the offering prospectus carefully, and make their own determination of whether an investment in the offering is consistent with their investment objectives, financial situation, and risk tolerance.

1. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. A copy of the prospectus can be found at fidelity.com/IPO. No offer to buy the securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date. An indication of interest in response to this communication will involve no obligation or commitment of any kind.

This information is intended to be educational and is not tailored to the investment needs of any specific investor.

Investment decisions should be based on an individual’s own goals, time horizon, and tolerance for risk.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

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