SpaceX IPO sparks global scramble for proxy plays

SpaceX IPO Sparks Global Investor Frenzy From Asia to Gulf

SpaceX’s record-shattering initial public offering, set to begin trading on Nasdaq on June 12 under the ticker SPCX, is generating a worldwide scramble for exposure to Elon Musk’s aerospace empire — from Asian retail traders hunting for proxy plays to Gulf sovereign wealth funds sitting on pre-IPO stakes now worth billions.

Asian Investors Turn to Proxies

With retail investors in much of Asia largely shut out of direct access to the IPO, traders are piling into supply chain stocks and space-themed ETFs as alternatives, Reuters reported Monday from Singapore. In Taiwan, component makers including Chin-Poon Industrial, Wistron NeWeb, and Universal Microwave Technology — all confirmed Starlink suppliers — have drawn strong interest. Japan’s Meiko Electronics is also being traded as a proxy.aol

In China, retail investor Hu Xiaobin told Reuters he bought shares in Sunway Communication and Western Superconducting Technologies over the past two months to ride the SpaceX wave. Korean retail investors have poured money into the Tema Space Innovators ETF, which holds a 6.49% private stake in SpaceX and has risen 29% since its March launch.chosun

Gulf Funds Eye Windfalls

Gulf sovereign wealth funds are positioned for major gains. The combined SpaceX stake held by Saudi billionaire Prince Alwaleed bin Talal’s Kingdom Holding and his private office could be worth as much as $10.5 billion at the IPO valuation, according to Asharq Business. Saudi Arabia’s Public Investment Fund invested $3 billion earlier this year and has reportedly been negotiating a $5 billion anchor allocation in the IPO itself. Other participants include the Qatar Investment Authority, Abu Dhabi’s ADIA, and Alpha Dhabi.substack

Europe and Endowments Line Up

European retail investors across at least seven countries can apply for shares through platforms including eToro, Revolut, Hargreaves Lansdown, and Trade Republic, with Germany’s BaFin having approved the offering prospectus. Up to 55.55 million Class A shares have been earmarked for European retail buyers. The application deadline for UK investors on eToro was set for Wednesday, June 10.etoro

U.S. university endowments also stand to profit handsomely. Washington University in St. Louis invested roughly $50 million in SpaceX a decade ago — a stake now worth more than 30 times that amount and representing over 10% of its $17 billion endowment, according to Bloomberg. The University of North Carolina system holds about 10% of its endowment in SpaceX, largely through early investments in Peter Thiel’s Founders Fund, The Wall Street Journal reported.sedaily

SpaceX is expected to price at $135 per share on June 11, selling 555.6 million shares and raising approximately $75 billion in what would be the largest IPO in history.nytimes