The oversubscription rate for the deal is reported to be three and a half to four times the planned offering size, indicating robust demand, as noted by Reuters on Friday. Long-only funds have placed what one source referred to as substantial orders. Musk briefly participated in several Zoom meetings with potential investors, as per a source.
The company is still actively engaging in the marketing process, sources indicated. On Tuesday, SpaceX President Gwynne Shotwell and CFO Bret Johnsen were scheduled to attend a lunch meeting with around 300 institutional investors at Morgan Stanley in Midtown Manhattan, hosted by Morgan Stanley Co-President Dan Simkowitz, according to a source familiar with the plans.
Investor interest may fluctuate before the expected IPO pricing on Thursday afternoon.
The subscription figures reflect expressions of interest rather than confirmed allocations, which will be determined upon pricing. The sources mentioned that large institutional investors often submit their orders nearer to the end of the IPO process. They requested anonymity due to the confidential nature of the matter.
SpaceX has not yet responded to a request for comment.
The offering is taking place amid significant market volatility, with the Nasdaq composite trading lower on Tuesday following its largest drop in over a year last Friday, and bitcoin declining by 2.8% on Tuesday, now 37% down from its January peak. Some analysts have suggested that part of the market downturn could be linked to sales by SpaceX investors raising funds for the IPO.
SpaceX’s roadshow presentation and IPO documentation highlight the distinctive characteristics of its rocket-launching business, which it claims has facilitated the majority of mass sent into orbit in the last three years, alongside the robust performance of its Starlink internet service.
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SpaceX has also emphasized a $23 trillion market potential it anticipates for its artificial intelligence ventures, claiming to be the only company capable of transcending the limitations of terrestrial enterprises to leverage space for developing AI computing capacity that is expected to generate substantial future demand.
According to SpaceX, the growth of electricity generation and computer capacity in the US has lagged behind China, partly due to obstacles encountered by large-scale projects in the country. The company asserts that this shortfall can be addressed by establishing data centers and other infrastructure in space through SpaceX launches.
“By drastically lowering the cost of access to space, we have expanded our mission to tackle some of Earth’s most pressing issues, including closing the digital gap by connecting over three billion unconnected individuals to the internet and to humanity’s collective knowledge,” SpaceX stated.
