SpaceX has communicated to its underwriting banks that it expects to hold the $135-per-share valuation disclosed in its amended IPO filing, according to people familiar with the matter. Those sources said the company is signaling firmness on that price as it runs through investor meetings during its roadshow.
Insistence on the disclosed price reflects the CEO's preference to maintain the offering at that level and upends the more common practice on Wall Street of allowing investor feedback during the roadshow to materially influence the final IPO price. The sources emphasized, however, that the stance is not an immutable commitment and could change before the IPO is concluded.
SpaceX began its roadshow meetings on Thursday. The roadshow is the phase when issuers and their bankers solicit investor feedback ahead of the internal meeting typically held one day before the shares begin public trading, where the final IPO price is usually set.
Three people familiar with the roadshow described investor appetite as insatiable. One of those individuals said analysts working on the offering have been handling as many as 20 investor calls a day, which exceeds the 10 to 15 calls per day commonly observed on other in-demand IPOs.
The company did not immediately provide comment when contacted. The trading debut is scheduled for Friday, June 12.
Context and process
During a typical IPO process, the issuer and its banks use the roadshow to calibrate demand and to help determine the final pricing at the customary pre-launch pricing meeting. In this case, sources said SpaceX has told its bankers it prefers to keep the price at $135 per share as disclosed in its amended filing, even while continuing to gather investor feedback.
Investor demand
People involved in the roadshow characterized demand for SpaceX stock as exceptionally strong, noting elevated volumes of investor outreach to the deal team. The higher-than-normal frequency of calls is one signal market participants use to gauge appetite for an offering.
Timing
The company’s public listing is expected to commence on Friday, June 12, subject to the normal closing and listing procedures. Sources cautioned the stated pricing intention could be revised before that date depending on developments during the remaining portion of the IPO process.