Goldman Sachs takes the lead position while Morgan Stanley plays a major role in retail investors

SpaceX ( SPAX.PVT ) has finally given investors their first look at its massive IPO, setting up what could be the most lucrative stock listing ever managed by Wall Street banks.

The rocket maker’s first S-1 filing provided an inside look at Wall Street’s listing after a reported $75 billion share sale. An offering of that size could upset the previous world record for an IPO, a $26 billion raise set by Saudi Aramco in 2019.

Goldman Sachs (GS) and Morgan Stanley (MS) will act as the two lead investment banks for the IPO, including a total of 23 investment banks.

It’s not clear what fees any Wall Street firm will have to pay for the transaction. But predictably, the deal will be a cash cow for the banks. Based on the size of the list, bankers’ total compensation can range anywhere between $800 million and more than $1 billion, according to Yahoo Finance estimates.

As its name appears first on the list of banks advising and underwriting the offering, Goldman Sachs has secured the coveted “left lead” position. The role earned him a prized position on Wall Street, meaning public bragging rights for investment banks.

The bank in that position holds the most prominent role of IPO advisor leading up to the company’s listing date. It comes with more work, often a larger financial stake in the deal, and ultimately a key role in telling the company’s market story.

The left banker’s job is to oversee all pre-IPO bookings. This includes planning about how many shares potential institutional investors want to buy and drafting the company’s governing documents. That means it also calls for a shot at the first day of the share distribution, which is expected to be very difficult for a deal of this type.

Morgan Stanley, seen as a longtime Wall Street ally of SpaceX CEO Elon Musk, is playing a key role as a “sustainable agent,” according to the filing.

Its main responsibility is to oversee the early trading of stocks, which includes stabilizing the stock price through a series of activities subject to securities laws.

In addition, Morgan Stanley has played an exclusive role in the distribution of SpaceX’s retail investors by running its directed share plan, an IPO share pool that is typically reserved for shareholders appointed by the company, according to a person familiar with the matter.

SpaceX also plans to distribute a wide range of shares to everyday investors through Morgan Stanley’s E-Trade and other investment platforms, including Charles Schwab (SCHW), Fidelity, Robinhood (HOOD), and SoFi (SOFI).

SpaceX has not disclosed its total stake to retail investors yet, but Musk may split 30%, according to Reuters. That portion would be about three times what is typically set aside in an IPO for everyday investors.

Morgan Stanley stands as a key Wall Street partner in financing Musk’s ventures. Along with Goldman Sachs, it helped lead the IPO of Musk’s Tesla (TSLA) in 2010.

The Wall Street bank’s relationship with the billionaire strengthened in 2022 when it helped orchestrate the billionaire’s takeover of the social network Twitter, now known as X. That deal remains one of the most visible and controversial deals in recent years.

It was painful for Morgan Stanley and other banks that were tied to loans when the value of the social media decreased. But fortunes turned in 2025 as the loan amount returned with the election victory of Musk’s former partner President Trump.

Morgan Stanley banker Michael Grimes, another key Musk ally, followed the world’s richest man to DC when Musk became the head of the Trump administration’s Department of Government Operations. Grimes returned to Morgan Stanley as chairman of the investment bank last February.

SpaceX has yet to disclose bank financing, although Goldman Sachs and Morgan Stanley are expected to receive large payouts. While Goldman also led the left on Tesla’s IPO, the management is notable given Morgan Stanley’s close relationship with Musk.

Despite the reputation, traders have already profited from backing Goldman instead of leading the left.

A nearly $2 billion bet on prediction market Polymarket pegged Morgan Stanley as a possible candidate for the position until earlier this month. On May 12, the odds turned sharply in favor of Goldman Sachs.

Both banks will be racing for top spots in 2026 in what will be a big IPO year. OpenAI (OPAI.PVT) is reportedly planning to go public in early September, with Claude maker Anthropic (ANTH.PVT) following close behind.

David Hollerith covers the financial sector. Email him at david.hollerith@yahoofinance.com. Follow him on X at @DsHollers.

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