Australian retail investors have shown unprecedented interest in the blockbuster float of Elon Musk’s artificial intelligence, rockets, and satellites business, SpaceX. The company develops and launches advanced rockets and spacecraft, alongside its satellite internet constellation. CommSec, the country’s lead retail broker, reported a record number of applications, with over 28,000 investors applying for shares – more than four times the volume received for its largest previous IPO. The brokerage encouraged customers to set up an international shares account to participate, leading to a record 37,000 international accounts opened since then.
“CommSec customers have shown record interest in this landmark IPO, with many opening international accounts specifically to access the offer,” said Carl Merchant, CommSec’s head of equity capital markets. Shares in SpaceX have surged almost 50 per cent since floating at US$135, reaching US$201.80, pushing its market capitalisation to US$2.65 trillion and positioning it as the world’s fifth-largest stock. New Zealand-based platform Sharesies also facilitated thousands of applications from Australian retail investors. The firm reported an average bid of US$3385, with nearly 40 per cent of applicants being first-time US traders, indicating broad participation.
Despite the strong retail uptake, which saw approximately 20 per cent of IPO shares allocated to retail traders—double the typical for a mega-cap listing—the float has drawn criticism. Stephen Mayne, a former Australian Shareholder Association adviser, cautioned against Musk’s “overblown spruiking.” Fund managers remain divided on SpaceX’s true valuation. While broker Angus Aitken anticipates shares could reach US$500, Morningstar has pegged its fair value estimate at just US$63 a share. Colonial First State’s Ben Lam warned that founder-controlled businesses, while capable of significant returns, carry inherent risks, adding that volatility for AI-adjacent stocks is expected as funding shifts.
