Japanese investors sought $6.2B in SpaceX’s record IPO

Japanese Investors Sought $6.2 Billion in SpaceX IPO Shares

Japanese investors expressed a willingness to buy more than 1 trillion yen ($6.2 billion) worth of shares in SpaceX’s record-breaking initial public offering, roughly three times what they ultimately received, according to two sources familiar with the offering cited by Reuters.usnews

The bulk of this demand came from retail investors, the sources said, requesting anonymity as they were not authorized to discuss the IPO publicly. Japanese investors ultimately received $2.2 billion worth of shares — about 16.3 million Class A shares representing approximately 3 percent of the total offering — according to a securities registration statement released on Friday.nippon

A Frenzy Among Japanese Retail Investors

The oversubscription rate in Japan was broadly in line with global demand for the IPO, which attracted more than $250 billion in worldwide investor interest against the $75 billion SpaceX raised. The company priced 555.6 million shares at $135 each, giving it a valuation of approximately $1.8 trillion.reuters

A Mizuho Securities spokesperson said an in-house survey showed more than 1,000 Japan-based customers sought allocations exceeding 100 million yen each. New account applications at the firm ran four times higher than the 12-month average during the first third of June, a sign of the excitement surrounding the listing among individual Japanese investors who have long been starved of marquee IPO deals.economictimes

Mizuho’s U.S. investment banking unit served as one of 23 underwriters on the deal and ran the Japanese portion of the offering. SpaceX had earmarked up to 30 percent of the overall IPO for retail investors globally — an unusually high allocation for a deal of this size.yahoo

The Largest IPO in History

SpaceX began trading on Nasdaq on June 12 under the ticker SPCX after completing the largest initial public offering ever, surpassing Saudi Aramco’s 2019 listing. Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JPMorgan Chase led the underwriting syndicate.thenextweb

The IPO’s success in Japan underscores a broader shift in Japanese retail investing habits. With domestic IPO activity subdued in recent years and the government encouraging citizens to move savings into equities, a marquee international listing offered an outlet for pent-up demand.bloomberg