Elon Musk’s SpaceX is attracting massive investor interest ahead of its much-anticipated stock market debut, with demand now nearing four times the size of the offering, according to Reuters, citing people familiar with the matter.
The company has received more than $250 billion worth of investor orders, even though it is looking to raise about $75 billion through its initial public offering (IPO). If the figures hold, the listing could become the largest IPO ever.
According to Reuters, the offering is currently between three-and-a-half and four times oversubscribed. The strong interest in SpaceX comes at a time when financial markets have been highly volatile.
The Nasdaq Composite was trading lower on Tuesday after suffering its biggest one-day drop in more than a year on Friday. Bitcoin also fell 2.8% on Tuesday and remains about 37% below the record high it reached in January.
SpaceX attracts $250 billion in demand for $75 billion IPO
The IPO is still in its marketing phase, meaning investor demand could change before shares are officially priced. However, people involved in the process say interest remains extremely strong. Large long-only funds, which typically invest for the long term rather than trade frequently, have submitted sizable orders.
The final allocation of shares will not be decided until pricing takes place, expected on Thursday afternoon. SpaceX has not publicly commented on the latest demand figures.
Top executives meet hundreds of investors
As part of the IPO roadshow, SpaceX executives have been meeting major investors to explain the company’s growth plans and future opportunities. On Tuesday, SpaceX President Gwynne Shotwell and Chief Financial Officer Bret Johnsen were expected to attend a lunch hosted by Morgan Stanley in Midtown Manhattan.
The event was expected to bring together around 300 institutional investors and was hosted by Morgan Stanley Co-President Dan Simkowitz.
Some market analysts have suggested that one reason for recent market weakness could be investors selling other assets to free up cash so they can participate in the SpaceX IPO.
SpaceX bets big on Starlink, AI and space-based data centres
The company pointed to its rocket-launch business, saying it has been responsible for the majority of mass sent into orbit over the past three years. SpaceX also emphasised the strength of Starlink, its satellite internet business, which has become one of the company’s biggest revenue drivers.
Beyond rockets and internet services, SpaceX is also pitching a much larger opportunity in artificial intelligence.
The company told investors that its AI-related business could tap into a market worth as much as $23 trillion.
According to SpaceX, it has a unique advantage because it can use space itself as part of its infrastructure strategy. One of the more ambitious ideas presented to investors involves building data centres and computing infrastructure in space.
With pricing expected later this week and demand already surpassing $250 billion, SpaceX appears on track for a record-breaking debut.
