BlackRock Seeks $5B SpaceX Stake Ahead of IPO as Demand Shatters Norms

BlackRock is negotiating for at least $5 billion worth of SpaceX shares prior to the company's public debut, a figure that dwarfs typical pre-IPO allocations. The scale mirrors 2023's largest IPO—chipmaker Cerebras at $5.55 billion—but SpaceX's offering operates on a different plane entirely.

Retail investors flooded the order book with over $70 billion in requests, while a single family office demanded $1 billion. Such figures would dominate headlines in conventional IPOs, yet here they're mere footnotes to SpaceX's $1.77 trillion valuation at $135 per share.

Bankers now face the unenviable task of rationing 555.5 million shares among institutions and retail traders. Elon Musk's push for broader investor participation collides with Wall Street's allocation algorithms in what may become the most oversubscribed offering in history.