SpaceX, the American aerospace company, has seen over $250 billion in demand for its initial public offering (IPO), significantly surpassing its target of $750 billion. This unprecedented interest is fueling excitement in Asian stocks and space-themed exchange-traded funds (ETFs).
According to Reuters on June 9, the demand for SpaceX's IPO is estimated to be 3.5 to 4 times the amount the company aims to raise. SpaceX is targeting a valuation of approximately $1.75 trillion. The final offering price will be determined on June 11, with trading on the Nasdaq set to begin on June 12.
Institutional investors have driven this surge in demand, with long-term funds placing substantial orders. CEO Elon Musk reportedly participated briefly in a video conference with potential investors. The current demand figures reflect the volume of orders submitted by investors rather than the actual allocation of shares, and large institutional investors often place orders at the last minute, meaning demand could fluctuate until pricing is finalized.
SpaceX cites its launch services and Starlink satellite internet as key growth drivers. The company has stated that its launch services account for the majority of cargo and satellites sent into orbit over the past three years. Additionally, SpaceX plans to establish artificial intelligence (AI) infrastructure in space, addressing the slow expansion of data centers and power supply in the U.S. The company estimates the potential market for this sector at $23 trillion.
The excitement surrounding the IPO is spilling over into the broader market. Investors in China and Hong Kong, facing restrictions on IPO subscriptions, are turning their attention to companies connected to SpaceX and the Starlink supply chain. In China, stocks related to Starlink terminals and rocket materials have gained attention. Lens Technology, which has positioned commercial space as a new growth area, has seen its stock rise nearly 50% this year.
Taiwanese supply chain companies are also being considered for indirect investments. Firms such as Chicony Electronics, Wistron NeWeb, and Universal Microwave Technology have announced they supply components to SpaceX. Japanese company Meiko Electronics is also mentioned among related stocks. The anticipation of increased capital expenditures and supply chain expansion following the SpaceX IPO is boosting interest in these companies.
European space stocks and the ETF market are reflecting optimism surrounding SpaceX. Companies like French satellite firm Eutelsat, German satellite manufacturer OHB, and Luxembourg's SES have all recorded double-digit gains this year. Space-themed ETFs that include some of SpaceX's private shares have also performed strongly since their launch.
However, there are concerns about excessive market overheating. The Nasdaq index recently experienced its largest drop in over a year, and Bitcoin has significantly declined from its peak.
Some market participants speculate that the recent market downturn may have been influenced by investors selling stocks or cryptocurrencies to purchase SpaceX shares. While the demand for the IPO is nearly four times the offering size, expectations for a post-listing price surge could lead to increased volatility for supply chain stocks and space-themed ETFs after the IPO.
Interest in this IPO extends beyond the offering size, focusing on whether buying momentum will continue after the listing. The market views SpaceX's IPO as a barometer for investment enthusiasm surrounding AI infrastructure, satellite internet, and global supply chains.
* This article has been translated by AI.
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