SpaceX IPO opens to Japanese retail investors

2026-06-08

Application terms and schedule

SpaceX is expected to carry out an initial public offering (IPO) as early as the 12th. Applications by Japanese retail investors began on the 5th, marking the first case in which domestic individual investors can widely participate in an IPO by a U.S. company.

SpaceX plans to issue about 555.55 million new shares, of which about 14.81 million to about 18.51 million shares will be offered in Japan. The provisional price range is $135 per share, which is seen as the effective offering price. The company is expected to raise $2 billion to $2.5 billion.

To apply, investors must have a stock trading account with either Mizuho Securities, Rakuten Securities or SBI Securities. Purchases can be made through a general account or an NISA growth investment account, but an account for trading foreign stocks must be opened before applying. In some cases, such an account may already have been opened at the same time as the securities account.

Applications at Rakuten Securities and SBI Securities began on the 5th. SBI Securities will accept applications until 10:59 a.m. on the 11th, while Rakuten Securities will accept them until 6:00 a.m. on the 12th. SBI Securities will announce lottery results after 8:00 p.m. on the 11th, while Rakuten Securities is set to announce them around 9:30 a.m. on the 12th.

Applications are possible from one share. Rakuten Securities will grant lottery entries for each unit of shares applied for. SBI Securities will conduct an additional drawing in some allocations for unsuccessful applicants who meet conditions such as deposit balances at SBI Shinsei Bank.

In Japanese IPOs, it is common to ask investors to indicate whether they want to buy after the offer price is decided, but this time investors should note that they will be automatically purchased unless they request to withdraw.

Funding arrangements and post-listing outlook

Applications at Mizuho Securities are accepted only on the 12th, and no lottery will be held. Shares will be allocated by comprehensively considering customers' investment knowledge, experience and investment policy. SBI Securities requires U.S. dollars to be prepared, while Rakuten Securities settles only in yen. Mizuho Securities accepts applications in either dollars or yen. Funds must be deposited into the account before the lottery.

The final offering price will be decided in the morning of the 12th Japan time. Trading on the first day is scheduled to begin at 10:30 p.m. the same day, and investors who buy in the IPO will be able to trade from the 12th.

SpaceX counts satellite communications service Starlink as its main source of revenue and also operates space and artificial intelligence (AI) businesses. The funds raised are expected to be used for investments including data centers for AI development and plans for mass-producing semiconductors. According to the securities registration statement, sales for the fiscal year ending December 2025 were $18.674 billion, while the final loss was $4.937 billion. The AI business posted a large loss.

In U.S. IPOs, the first completed trade price is called the opening price. For popular stocks, it often exceeds the offer price, which is seen as part of the appeal for retail investors. In general, however, the gap between the offer price and the opening price tends to be smaller in the U.S. than in Japan.

According to Takaaki Kaneko, professor emeritus at Keio University and an expert on IPOs, the average initial return rate, which shows how much the opening price exceeded the offer price in Japanese IPOs from 2021 to 2025, was 48%. According to Jay Ritter, professor emeritus at the University of Florida, U.S. IPOs in the same period averaged 29%. In the U.S., institutional investors account for most participants, while in Japan the market is centered on individual investors, and this difference in investor composition is said to contribute to the difference in price movements.

PSR near 100 times

When evaluating an IPO, the price-to-sales ratio, or PSR, which compares the share price with sales per share, is used as a reference. Based on SpaceX's 2025 sales, the PSR is close to 100 times. Even during the IT bubble, the median was around 40 times.

Although it may appear expensive, it is difficult to make a simple comparison with conventional IPOs when assessing how the market values a business plan that looks as far ahead as settlement on Mars. Another feature of SpaceX is that 30% of the shares are allocated to retail investors, more than in a typical U.S. IPO.

In Japan, investment in U.S. stocks is spreading and interest in IPOs is also rising. AI start-ups Anthropic and OpenAI are also expected to go public in the second half of 2026. If each company chooses to offer shares in Japan, U.S. company IPOs could become widely established in the domestic market.

Enjoyed this article? Share it with your network!