You have probably seen the headlines about Senator Elizabeth Warren trying to delay the SpaceX IPO. While it makes for good political drama, the reality for investors is that the deal is almost certainly happening on Friday. The real story isn't the political noise, it's the simple math of supply and demand. Getting your hands on SpaceX (NASDAQ: SPCX) shares will be nearly impossible for the average investor.
SpaceX's initial public offering is more than four times oversubscribed, meaning Wall Street's biggest players have placed orders for more than $300 billion in stock for a deal raising only $75 billion. When the dust settles, a staggering $225 billion (or more) in cash will be left on the sidelines from investors who wanted a piece of SpaceX but got locked out. That money won't just disappear; it's about to flood the rest of the publicly traded space sector.