SpaceX IPO excludes mainland China and Hong Kong investors
Investment restrictions
SpaceX is excluding investors from mainland China and Hong Kong from participating in its initial public offering on the Nasdaq market. The move appears aimed at avoiding security and compliance risks tied to its regulated defense technology.
According to Bloomberg, SpaceX has instructed financial institutions handling underwriting and sales not to accept subscriptions from investors in mainland China and Hong Kong in the public offering of newly issued shares. Citigroup, one of the joint bookrunners, conveyed the policy to the underwriting syndicate.
Military technology and regulatory compliance
The company handles most US rocket launches and also provides the Starshield satellite communications service for the US military. Its core space-related technologies fall under the US government's International Traffic in Arms Regulations (ITAR), and rocket and satellite technologies for military use are subject to strict export controls. Because there are also restrictions on the transfer of materials and data, as well as hiring, SpaceX appears to have narrowed stock allocations from a compliance standpoint.
Bloomberg said investors in mainland China and Hong Kong, as well as those in ITAR-restricted regions such as Russia, Syria and Lebanon, are also being excluded from the IPO. SpaceX and Citigroup declined to comment.
Listing preparations and demand
SpaceX is scheduled to list on the 12th and is expected to raise $75 billion, making it the largest IPO in history. The indicative offer price is $135, valuing the company at about $1.77 trillion. It began its roadshow on the 4th, presenting to institutional investors and wealthy clients while also posting materials on a dedicated IPO website.
Reuters reported that as of the 5th, users in mainland China and Hong Kong were unable to access the IPO website. SpaceX may have blocked access. The final offer price is expected to be set on the 11th, and the company has told the syndicate that it intends to keep the price at $135, saying demand is strong.
According to the Wall Street Journal, Morgan Stanley analysts said SpaceX revenue could reach $3.4 trillion in 2040. Goldman Sachs analysts also expect revenue to exceed $470 billion in 2030.
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