$150B in demand secured, double the target; Mirae Asset Securities subscription sells out; asset managers compete for allocation
Investor enthusiasm for SpaceX's initial public offering is running high. Orders have poured in at twice the target fundraising amount, subscription allotments in South Korea sold out almost immediately, and exchange-traded funds tied to the listing are drawing fresh attention ahead of the company's market debut.
SpaceX secured roughly $150 billion (about 229 trillion won) in investor demand during a recent bookbuilding process — double its $75 billion (about 114 trillion won) fundraising target — according to Reuters and other international media outlets. The $75 billion target is itself considered the largest IPO fundraise in history, making the level of oversubscription all the more striking to market watchers.
The figures reflect early indications of interest rather than final confirmed orders, as the investor roadshow is still under way and order sizes may shift before pricing is set. Large institutional investors — including pension funds, sovereign wealth funds and global asset managers — often submit orders late in the IPO process, leaving open the possibility that final demand could climb even higher.
SpaceX is set to list officially on the Nasdaq on Friday. The offering price has been set at $135 per share (about 200,000 won).
Domestic investor interest has been equally intense. Mirae Asset Securities conducted a first-round subscription on June 5, allotting $300 million (about 458.3 billion won) worth of SpaceX IPO shares; the entire allocation sold out immediately after sales opened. A second-round subscription held Monday sold out in roughly two minutes.
Both rounds were open to qualified individual and corporate professional investors. Total subscriptions amounted to $500 million (763.9 billion won). The minimum subscription was set at $100,000 (about 152.78 million won) and the maximum at $3 million (about 4.583 billion won).
SpaceX conducted a 5-for-1 stock split before the listing and reserved 30 percent of the offering for retail investors — an unusually high allocation given that the typical retail share in US IPOs runs between 10 and 15 percent.
Ordinary retail investors in South Korea were ultimately shut out of the subscription. Mirae Asset Securities conducted the offering as a private placement targeting professional investors only, leaving general investors unable to participate directly in the SpaceX IPO.
As a result, retail investors are turning to indirect exposure through space and aerospace ETFs and related stocks. According to Korea Exchange data, retail investors net purchased 41 billion won worth of the TIGER US Space Tech ETF on Monday.
The ACE US Space Tech Active ETF followed with 14.4 billion won in net retail purchases, ahead of the KODEX US Space Aerospace ETF at 3.1 billion won and the SOL US Space Aerospace TOP10 ETF at 1.3 billion won.
Asset managers are also moving to capture the demand. Korea Investment Management announced Thursday that it would incorporate SpaceX shares acquired through the IPO into its ACE US Space Tech Active ETF. The firm secured the shares by subscribing through allocations made to IPO underwriters Goldman Sachs and Morgan Stanley, allowing the ETF to hold SpaceX from the offering stage onward.
Mirae Asset Global Investments, Samsung Asset Management and Shinhan Asset Management each plan to add SpaceX to their respective space-related ETFs after the listing, with allocations of up to 25 percent of each fund's portfolio.
moon@heraldcorp.com
