SpaceX launches largest IPO ever at $135 per share

SpaceX is set to conduct the largest initial public offering in history on Friday, pricing shares at $135 each and planning to raise approximately $75 billion, with the potential to reach $85.7 billion if underwriters exercise additional allotment options. The listing on the Nasdaq under the ticker SPCX will value the company at around $1.75 trillion, cementing its position among the world's largest listed companies. The offering has drawn investor demand of roughly $150 billion, about double the amount SpaceX is seeking to raise, according to sources familiar with the matter. Korean financial institutions have shown intense enthusiasm for the offering, with Mirae Asset Securities' first-round private subscription for accredited investors selling out within minutes, representing $300 million of the $500 million available to Korean investors. Korea Investment Management, which participated in the institutional book-building process, plans to add allocated shares to its ACE US Space Tech Active ETF and Global Space Technology & Defense Fund, with the goal of raising SpaceX's weighting in its ETF portfolio to as much as 25 percent by combining IPO allocations with post-listing market purchases. However, some asset managers like KB Asset Management have opted to stay on the sidelines, citing concerns about valuation and post-IPO volatility similar to Meta's 38 percent decline in the six months following its listing. Market analysts are warning of significant volatility risks stemming from the IPO's unprecedented scale. BNP Paribas estimates that retail and passive investors may sell a combined $50 billion of other stocks to raise funds for buying SpaceX, with passive buying, retail investor chase, and levered ETF and option flows potentially creating liquidity challenges. The timing compounds these concerns, as the IPO falls near the end of the second quarter when more than $100 billion in unrelated stock sales were already expected. Meanwhile, cryptocurrency exchange Bybit announced it will offer retail investors access to tokenized SpaceX IPO shares through its platform, allowing users to purchase at IPO pricing without needing traditional brokerage accounts. The Financial Supervisory Service is reportedly reviewing whether Korean distributors complied with investor protection requirements.