Retail net purchases top 60 billion won over past month
SpaceX IPO demand fuels inflows ahead of listing
Korea Investment Management first domestic asset manager to confirm SpaceX IPO participation
Korea Investment Management announced Monday that retail investors made net purchases exceeding 60 billion won in its ACE US Space Tech Active exchange-traded fund over the past month.
According to Korea Exchange data as of Friday, retail net purchases into the ACE US Space Tech Active ETF totaled 61.2 billion won over the past month. Retail investors bought the ETF on a net basis on all but three trading days during that period. On Friday alone, net purchases reached 14.5 billion won.
The ACE US Space Tech Active ETF is an actively managed fund that invests in high-growth companies within the space industry. It focuses on reusable launch vehicles, AI-powered satellite data analytics and space data centers. The fund's portfolio centers on New Space companies rather than traditional aerospace and defense firms.
The surge in inflows reflects investor demand tied to the anticipated listing of SpaceX. Korea Investment Management announced Thursday that it would participate in the SpaceX initial public offering.
SpaceX shares allocated to Korea Investment Management through the IPO will be distributed between the ACE US Space Tech Active ETF and the Korea Investment Global Space Technology & Defense Fund. Korea Investment Management is currently the only domestic asset manager to have officially confirmed participation in the SpaceX IPO.
The ACE US Space Tech Active ETF can incorporate SpaceX at the offering price because of its active structure. Passive products that seek full index replication must wait for SpaceX to be added to the underlying index first, a process that can take two to three business days after listing. Beyond its IPO allocation, the fund plans to expand its SpaceX weighting to as much as 25 percent through additional purchases on the day of listing.
"Through the ACE US Space Tech Active ETF, which leverages the strengths of active management, investors can gain indirect exposure to the SpaceX IPO," said Nam Yong-su, head of the ETF division at Korea Investment Management. "That is the key difference from passive products, which cannot participate in the IPO."
Nam said there is a clear distinction between participating in an IPO and buying a stock after it lists. "The share price is likely to rise on the first day of trading, and the only way to fully capture that is to participate in the IPO," he said.
Elon Musk's SpaceX attracted investor demand of around $150 billion — roughly double its fundraising target — for the offering. While a two-times subscription rate is not unusual for an IPO, the figure is considered impressive given that the SpaceX listing is expected to be the largest in history. The company plans to raise $75 billion through the offering.
th5@heraldcorp.com
