Demand for Elon Musk's SpaceX IPO has surpassed $250 billion, reaching nearly four times oversubscription. This was reported by Reuters citing its own sources.
The company plans to raise about $75 billion by offering 555 million Class A shares at $135 each. Sources indicated that the current oversubscription level is 3.5 to 4 times the planned deal size.
Reuters emphasized that these figures reflect indicative interest from institutional investors, including large bids from long-term funds, and may change. Musk has participated in several Zoom meetings with potential buyers, one agency source noted.
SpaceX continues its marketing efforts. Company President Gwynne Shotwell and CFO Bret Johnsen are expected to attend a lunch for institutional investors at Morgan Stanley's Manhattan office, organized by the bank's co-president Dan Simkovitz, according to sources.
The offering comes amid extreme market volatility. On June 10, the Nasdaq Composite was trading down after its largest single-day drop in over a year, while Bitcoin fell 2.8%, sitting 37% below its January peak.
Some analysts suggested that one factor behind the market pullback could be asset sales by buyers freeing up liquidity to participate in the SpaceX IPO.
Recall that in May, SpaceX filed a public IPO application with the SEC. According to the S-1 form, as of March 31, the firm held 18,712 BTC, purchased for $661 million.