Goldman Sachs Expected to Lead SpaceX IPO Underwriting, Morgan Stanley to Follow

TradingKey - According to people familiar with the matter, Goldman Sachs ( GS) is expected to serve as the lead underwriter for the SpaceX IPO, ranking first on the list of underwriters. Morgan Stanley ( MS) is also a lead underwriter for this IPO, but is expected to rank behind Goldman Sachs.

This arrangement surprised some market participants, given that SpaceX founder Elon Musk has long maintained a close partnership with Morgan Stanley, which has frequently provided financing and M&A services for Musk's companies such as Tesla ( TSLA ), X, and others.

Other banks participating as lead managers include Bank of America ( BAC ), Citigroup ( C ), and JPMorgan Chase ( JPM ).

Reportedly, in addition to the five lead underwriters, approximately 16 other investment banks will form the underwriting syndicate, potentially creating the most powerful investment banking lineup in Wall Street history.

According to multiple media reports, SpaceX is discussing allocating up to 30% of the new shares in the IPO to retail investors, far exceeding the traditional 5%-10% allocation ratio.

The IPO timetable has been preliminary clarified: the company will publicly disclose its prospectus as early as May 20 ET, launch its global roadshow on June 4, determine the offering price on June 11, and list on Nasdaq as early as June 12 under the proposed ticker symbol "SPCX".

SpaceX confidentially filed its S-1 document with the U.S. Securities and Exchange Commission on April 1. The formal publication of the prospectus will, for the first time, provide the public with a comprehensive disclosure of its financial condition and ownership structure.

Regarding listing preparations, SpaceX shareholders approved a 5-for-1 stock split proposal on May 15, adjusting the fair value per share from approximately $526.59 to approximately $105.32 to lower the investment threshold and attract retail investors.

Market expectations place SpaceX's valuation between $1.75 trillion and $2 trillion, with a target fundraising size of as much as $70 billion to $80 billion. This far exceeds Saudi Aramco's 2019 record of $29.4 billion, making it potentially one of the highest-valued and largest IPOs in history.

Multiple market strategists believe that SpaceX's listing could create a capital siphon effect on Tesla, as investor focus and funds within the "Musk ecosystem" shift from Tesla to SpaceX. This impact is expected to manifest gradually over approximately three months.

Meanwhile, competitor Amazon ( AMZN )'s Project Kuiper has announced an accelerated deployment, and competition in the low-earth orbit satellite internet sector is set to intensify.

It should be noted that offering details are still being finalized, and specific IPO arrangements are subject to change.