r/wallstreetbets Mar 30, 08:38 PM
SpaceX in talks to favor E*Trade over Robinhood and SoFi for retail IPO shares Source: https://finance.yahoo.com/markets/stocks/articles/robinhood-reportedly-cut-blockbuster-spacex-200711229.html
As per the latest Reuters report, Elon Musk's rocket-making giant SpaceX is reportedly choosing Morgan Stanley's E*Trade to go public later this year.
But this means two of Wall Street’s biggest brokerages, Robinhood Markets (Nasdaq: HOOD) and SoFi Technologies (Nasdaq: SOFI), will miss out on the biggest IPO of history, according to two people familiar with the matter.
SpaceX gears up for IPO
SpaceX is one of the world's top space technology companies. The rocket maker has held Bitcoin (BTC) since 2021 and currently holds 8,285 coins on its balance sheet.
The company is expected to launch its initial public offering (IPO) this year, and as per the latest Reuters report, E*Trade could secure the majority of retail allocation for the IPO.
Morgan Stanley is a lead underwriter on the deal and is expected to route a significant portion of shares set aside for small U.S. retail investors through the brokerage platform E*Trade, which it acquired in 2020, the report said.
Fidelity Investments is also in the race to distribute some of the SpaceX shares, the report added.
SpaceX is considering setting aside up to 30% of its shares for retail investors, and a significant portion of that allocation is expected to go to private wealth and high-net-worth clients.
Robinhood, SoFi reportedly out of race
Robinhood is a Menlo Park, California-based e-trading platform that is known for its stock, cryptocurrency, and tokenized stock offerings. Founded by Stanford graduates Vladimir Tenev and Baiju Bhatt in 2013, the company has emerged as a popular broker.
Founded in 2011, SoFi Technologies, Inc. (Nasdaq: SOFI) is an American fintech company that became the first nationally chartered bank in the U.S. to launch cryptocurrency trading for retail customers in November last year. Its brokerage platform is popular among investors.
Both companies are reportedly out of the SpaceX IPO race as per the Reuters report.
The HOOD stock was trading 2% lower at $64.88 at press time, and the SOFI stock was trading 1% lower at $150.07.
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