Japanese retail investors flocked to subscribe to SpaceX's IPO after the company offered a 30% stake to retail investors and increased its fundraising target in Japan to $2.5 billion.
June 11, 2569 at 08.04:XNUMX a.m. Bloomberg News reported that SpaceX's $75,000 billion IPO is generating buzz among investors worldwide. Particularly in Japan, which is seen as one of the key markets for the historic fundraising round of the space company founded by Elon Musk.
The overwhelming response in Japan, with its combined household financial assets exceeding $15 trillion, has led SpaceX to increase its fundraising target from Japanese investors by 25% to $2.5 billion. This is a rare and significant deal in the Japanese market; since SoftBank Corp.'s IPO in 2561, virtually no other IPO has come close in value.
SpaceX allocated 30% of its IPO shares to retail investors, sparking intense bidding despite recent selling pressure on US technology stocks. Reports indicate that demand exceeded the offered shares by more than four times, prompting the underwriting bank to implement measures to prevent duplicate orders placed across multiple channels.
Mr. Getto Hagiya, a 20-year-old Japanese investor. He said that although the chances of being allocated shares are slim, if he were to get one, it would be like winning the lottery because he believes in Elon Musk's vision and sees enormous growth potential in the space industry.
Japan is one of only a few countries in the world, along with Australia, Canada, and some European countries, that allow retail investors to directly subscribe to SpaceX's IPO shares. Based on the latest fundraising target, Japanese investors are expected to account for around 3% of the total funds raised, and may hold a higher proportion among retail investors.
However, not all investors are ready to buy immediately. Some are choosing to wait for more information about SpaceX's other businesses and to allow the share price to stabilize before investing, concerned that high expectations might drive the share price above its fundamentals in the initial period after its IPO.
These concerns are consistent with the views of... Mr. James Chanos, a renowned investor. which is viewed as This initial public offering (IPO) is a crucial test of market conditions, and it is believed that current investor interest is driven more by hope and optimism than by financial fundamentals. By stating that The estimated business valuation is still difficult to explain solely through financial performance figures.
The interest is not limited to Japan alone. In Australia, large numbers of retail investors flocked to brokerage firms to inquire about subscribing to SpaceX shares, resulting in long queues. Meanwhile, in several Asian countries, such as Hong Kong and China, retail investors were unable to participate directly due to regulatory restrictions on strategically important technology.
In South Korea, many retail investors are trying to find indirect investment opportunities through space-related ETFs or technology stocks that hold stakes in SpaceX, while the majority of India's 130 million investors do not have direct access to US IPOs.
Analyst I think that Japan is a key target for SpaceX because Japanese households hold a combined total of over 2.4 trillion yen in financial assets, with nearly half of that in the form of deposits and cash—higher than many developed countries, including the United States.
This offering also utilizes Japan's special fundraising structure called Public Offering Without Listing (POWL), which allows foreign companies to offer securities to Japanese investors without being listed on the local stock exchange. This has been used before for large deals involving Visa and PayPay.
Capital market expert I think that SpaceX is a prime example of a global company that can leverage such a structure to attract massive investment from Japanese retail investors and help finance one of the largest fundraising rounds in global capital market history.
refer : www.bloomberg.com
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