Robinhood customers ran into trading problems on Friday as SpaceX shares began changing hands for the first time on public markets.
The issues surfaced at the start of trading for what is one of the most anticipated IPOs in recent memory. SpaceX, Elon Musk’s aerospace and space transportation company, priced its shares at $135 apiece ahead of its debut on June 12 under the ticker SPCX on Nasdaq. The offering is expected to raise roughly $75 billion, which would make it one of the largest IPOs in history and value the company near $1.77 trillion.
What happened on Robinhood
Robinhood was one of several brokerages selected to offer retail participation in the SpaceX IPO, alongside Fidelity, Schwab, SoFi, and E*Trade. Retail investors were estimated to receive between 20% and 30% of the total IPO shares, a meaningful allocation for an offering of this size. That allocation was distributed through Robinhood’s IPO Access platform, which uses random selection to manage requests when demand outstrips supply.
To keep early investors from flipping shares for a quick profit, anti-flipping rules imposed a 30-day hold period. Investors who sold within that window faced penalties.
