NEW YORK, June 9 — SpaceX’s long-awaited initial public offering, expected to fetch a US$1.75 trillion (RM7.11 trillion) valuation, has set off a frenzy among retail ‌investors clamouring for a share of Elon Musk’s rocket, satellite and AI empire. It has become one of the biggest FOMO trades of the year, despite SpaceX’s lack of profits, drawing so much investor demand ahead of the IPO that bankers have already received twice as many orders as available shares. SpaceX has reportedly earmarked as much as 30 per cent or US$22.5 billion in ‌shares for retail investors, a rare move for a blockbuster IPO that is typically dominated by institutional buyers.

Here’s what investors need to know about buying shares in the IPO, who may get access and the risks of purchasing the stock once it begins trading.

How can you buy shares? 

Trading under the symbol SPCX, SpaceX has picked a handful of brokerage firms to distribute shares in the IPO to retail customers in the US

Investors typically need to have an eligible brokerage account, meet minimum funding requirements and submit an indication of interest before the IPO is priced. Requirements vary by brokerage and there is no guarantee your order will be filled.

Fidelity lowered its eligibility requirements from holding US$500,000 in a Fidelity account to US$2,000 just in time for the SpaceX IPO.

• Fidelity Investments: US$2,000 account minimum
• Robinhood Markets: US$0 account minimum
• SoFi: US$0 account minimum
• E*Trade: US$0 account minimum
• Charles Schwab: US$100,000 account minimum

Brokerages warn against “flipping,” or selling IPO shares shortly after a stock begins trading. Investors who sell their stock within two to four weeks of the offering could be restricted from future IPOs.

Can international investors buy shares?

While SpaceX’s ‌IPO is being offered to investors in several countries, access varies significantly by market. International investors also face additional eligibility requirements, limited share allocations, or regulatory restrictions ⁠compared with US investors, depending on where they live. Qualified investors in Germany, Denmark, ⁠France, the Netherlands, Norway, Spain and Sweden will be able to buy shares once SpaceX’s European prospectus is ⁠approved by regulators.

Here are the countries where SpaceX ⁠said qualified investors might be able ⁠to buy its shares, depending on the eligibility requirements in each country. All of these nations impose restrictions on who can buy and some even restrict how they can invest in SpaceX. Check with local authorities on the specific rules.

• Argentina
• Australia
• Brazil
• Colombia
• Denmark
• European Economic Area
• France
• Germany
• India
• Israel
• Malaysia
• Mexico
• The ⁠Netherlands
• New Zealand
• Norway
• Peru
• Philippines
• Qatar
• Saudi Arabia
• Singapore
• South Africa
• South Korea
• Spain
• Sweden
• Switzerland
• Taiwan
• Thailand
• United Arab Emirates
• United Kingdom

What happens if you don’t get an IPO allocation?

Investors who do not receive shares in the IPO can still buy SpaceX stock once it begins trading on the public market on Friday. However, the shares may move sharply when trading opens, particularly if demand exceeds the number of shares available. In popular IPOs, stocks often have a “pop,” soaring above their offering price on the first day, as investors who missed out on getting all the shares they wanted allocated ⁠at the IPO price chase a limited number of shares.

Investors can also invest in SpaceX through index funds like the Nasdaq 100, which has granted the company fast-entry into the index that tracks the 100 biggest companies trading on the tech-heavy exchange.

What risks should investors consider?

At ⁠roughly 110 times trailing sales, SpaceX’s valuation assumes years of rapid growth, raising the stakes for investors if the company falls short of expectations. Some analysts have cautioned ⁠SpaceX’s valuation reflects ⁠lofty expectations for future growth, leaving little room for disappointment. In addition, it operates in a capital-intensive industry where launches, satellite deployments and regulatory developments can affect financial performance. SpaceX in its IPO prospectus said it does not expect to be profitable any time soon. The stock is also unlikely to qualify for inclusion in the S&P 500 in the near future ‌because the index requires companies to meet profitability and other eligibility criteria. SpaceX’s lofty valuation could come under pressure as Anthropic and other marquee AI companies prepare to go public and as shares held by early investors and employees gradually enter the market once their lockup periods expire. — Reuters

Milan-based app studio Bending Spoons has filed for an initial public offering (IPO) in the United States with a potential valuation of $20 billion.

[Read More]

HONG KONG, June 5 — SpaceX’s website and IPO marketing documents were not accessible today in Hong Kong and mainland China, a Reuters review showed, a step that threatens to curb participation by investors there in a listing expected to be ‌the world’s largest.

Elon Musk’s SpaceX aims to raise US$75 billion (RM302 billion), the most globally in an IPO, in a deal that would value the company at US$1.75 trillion, immediately vaulting it into the ranks of the 10 most valuable US-listed firms.

The company kicked off marketing roadshows yesterday in New York and its IPO roadshow materials were posted on its website, accessible to users in most major Asian markets, except for mainland China and Hong Kong, the Reuters review showed.

Both institutional and retail investors access a company’s IPO marketing material to better acquaint themselves with the business and financial details of such candidates, to ensure they pick the best investment prospects.

Reuters could not immediately establish why and since when the website of SpaceX, the rocket, satellite and AI company, and the IPO material were restricted in mainland China and the world’s No. 1 wealth hub of Hong Kong.

SpaceX did not immediately respond to Reuters’ request for comment ‌outside US working hours.

Citigroup, one of the lead banks, declined to comment. Spokespeople for the IPO’s other lead banks, Bank of ⁠America , Goldman Sachs, JPMorgan, and Morgan Stanley, did not immediately respond ⁠to requests for comment.

Could be first US market debut above US$1 trillion

The SpaceX IPO has generated ⁠global interest and the listing could become the ⁠first US market debut in ⁠excess of US$1 trillion, which would immediately make it one of the world’s most valuable publicly traded companies.

Besides a long list of Wall Street giants, Japan’s Mizuho and Macquarie Capital in Australia are involved in managing SpaceX’s IPO in Asia Pacific, the roadshow presentation showed.

An “Error 1009” message ⁠was displayed in response to attempts to access the company website and marketing material both in mainland China and the global financial centre of Hong Kong, the Reuters review showed.

Web security provider Cloudflare said the most common explanation for the error was that the website owner “has banned” the country or region of the related IP address from access.

Such a block is usually a company decision, said Francis Fong, honorary president of the Hong Kong Information Technology Federation.

While Hong Kong users have also been unable to access some US government websites ⁠in recent years, such cases are rare for major companies, he added.

Musk is a household name in China, the world’s second-largest economy, where the success of his Tesla electric vehicles makes him one of the most popular foreign ⁠business figures.

Jeffery Chan, a managing director at Hong Kong’s Central Asset Investments, said the access restrictions could be due to SpaceX’s status as a ⁠defence contractor, adding ⁠that Chinese investors have not typically been a target market for the company.

“For local retail investors, getting a direct piece of the IPO book is going to be incredibly tough. But for regional institutional funds, the pipeline will likely run through standard US bookbuilding,” he said.

In February, two Democratic US senators ‌urged the Pentagon to conduct an immediate review of SpaceX amid accusations that Chinese investors had secretly acquired stakes in the closely held rocket maker, citing potential national security risks. — Reuters