Tesla's (TSLA) Chief Executive Elon Musk is planning to distribute as much as 30% SpaceX's initial public offering to individual investors, Reuters reported Thursday, citing an unnamed person familiar with the matter.
Musk plans to pair the oversized retail allocation to selecting bankers, the news outlet said, citing unnamed people having knowledge of the matter, who added that the Tesla CEO chose Bank of America (BAC) for focusing on domestic retail distribution.
Retail investors' demand remains robust, spanning wealthy family offices that have supported SpaceX for years as well as smaller investors drawn to Musk's companies, the people told Reuters.
SpaceX has defined different responsibilities to banks, including Morgan Stanley (MS), which is anticipated to oversee smaller-ticket retail investors, while Bank of America will deal with high net-worth clients and family offices, and UBS (UBS) will advertise to those investors globally, the people told the media outlet.
Other banks include Citigroup (C), Barclays (BCS), Deutsche Bank (DB), Royal Bank of Canada (RY), Mizuho Financial (MFG), according to Reuters.
SpaceX did not immediately respond to MT Newswires' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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