SpaceX's initial public offering on the Nasdaq raised $75 billion by selling 555.6 million shares at $135 each, assigning a valuation of $1.77 trillion to the company, according to reports. Retail demand soared past $100 billion, dramatically exceeding the portion set aside for non-institutional buyers. This overwhelming interest leaves many small investors with reduced allocations, setting the stage for volatile trading when the stock debuts.

The $15–$22.5 billion retail pool overwhelmed by $100 billion in orders

Total orders from individual investors surged past $100 billion, according to reports, while only $15 billion to $22.5 billion of the IPO was allocated for non-institutional buyers. As a result, many retail applicants will receive only a small fraction of their requested shares, if any. Market observers anticipate that diisappointed buyers will scramble to enter the market on debut, while early sellers look to cash in on immediate gains, potentially fueling volatility.

The extreme subscription rate underscores the immense public appetite for SpaceX shares, despite the company's sky-high valuation. The source notes that thousands of British retail investors appear to have missed out entirely, reflecting the global scale of demand.

BlackRock's $5 billion bid and sovereign wealth funds from Saudi Arabia and Kuwait compete for shares

Institutional heavyweights aggressively pursued allocations alongside retail investors. According to reports, BlackRock aimed to secure at least $5 billion, while sovereign wealth funds from Saudi Arabia and Kuwait sought between $1 billion and $5 billion each. This institutional competition further squeezed the retail pool , as heavyweight investors also sought large portions of the offering.

The intense demand from both institutional and retail sides highlights the singular nature of the SpaceX IPO as a landmark event. Every major investment advisory firm is discussing the offering, with fund manager Jed Ellerbroek noting the impending trading day will be chaotic, as reported.

'Extraordinary enterprises can be poor investments at excessive valuations' — Rathbones' David Coombs warns

Not all market watchers view the frenzy uncritically. David Coombs of Rathbones satted, according to the report, that while SpaceX is among the most innovative firms of its generation, extraordinary businesses are not attractive at any price and the company appears overvalued by conventional metrics. Chase Investment Counsel's Peter Tuz stressed the historic nature of the event, cautioning that a post-IPO decline could negatively impact overall market sentiment and the pipeline of upcoming technology listings.

The valuatoin debate is central to the IPO's significance. Bulls point to SpaceX's dominant position in space launch services and its association with frontier AI as justification, while bears warn that even the best companies can be poor investments at excessive prices. The debut is widely seen as a critical test of investor confidence not just in SpaceX but in the broader AI narrative, with high-profile listings for Anthropic and OpenAI scheduled later this year.

New Street Research's $165 target versus the trillionaire trajectory for Elon Musk

Analysts at New Street Research project the share price could climb to $165 within a year, lifting the company's market cap past $2 trillion, with a bull-case target of $330, according to the source. such a trajectory would position Elon Musk, SpaceX's co-founder and CEO, on a path to become the world's first trillionaire. The IPO is also interpreted as a referendum on Musk's personal entrepreneurial credibility.

Yet the open question remains: how many retail orders were actually filled? The source does not disclose specific allocation percentages for individual investors. Nor does it detail the exact allotment for BlackRock or the sovereign wealth funds. Without these figures, it is unclear whether the public's enthusiasm will be rewarded or if the retail frenzy was merely a sideshow to institutional dominance. The listing on Nasdaq will provide the first real test of whether SpaceX's valuation can hold in open trading.