SpaceX Aims for Historic IPO, Includes Taiwan Among Eligible Countries for Subscription

(New York, 7th, Comprehensive Foreign Report) American space exploration technology company SpaceX plans to raise a record $75 billion through an Initial Public Offering (IPO), which could lead to a market capitalization of $1.77 trillion upon listing. Global investors are enthusiastically subscribing, and the countries currently open for subscription include Taiwan.

According to Reuters, investors are eagerly subscribing to the shares of the company, which is an empire of rockets, satellites, and artificial intelligence (AI) under billionaire Elon Musk.

The SpaceX IPO is open to investors from many countries, including Taiwan, Singapore, South Korea, and several European nations. Specific subscription eligibility will depend on local regulatory authorities and brokerage firms.

Although SpaceX has not yet achieved profitability, this IPO has become one of the most high-profile "Fear Of Missing Out" (FOMO) investment themes of the year. Due to overwhelming investor subscriptions, SpaceX's underwriters have already received demand for about twice the number of shares expected to be issued.

SpaceX plans to issue approximately 555.6 million new shares at a target price of $135 per share, aiming to raise $75 billion.

The report indicates that SpaceX reportedly plans to reserve about $225 billion worth, or up to 30%, of its IPO shares for retail investors. This move is quite rare compared to past heavyweight IPOs dominated by large institutional investors.

SpaceX will be listed on the Nasdaq exchange under the stock symbol "SPCX" on the 12th, Eastern Time, and will select several U.S. brokerages to distribute the IPO shares to successful retail investors.

Investors typically need a qualified brokerage account, meet minimum funding requirements, and submit an indication of interest before the IPO is priced. However, subscription conditions vary among brokerages, and there is no guarantee that every subscription order will be filled.

Some U.S. brokerages have adjusted their subscription thresholds. Before the SpaceX IPO, Fidelity Investments significantly lowered its eligibility threshold from $500,000 in account holdings to $2,000 (approximately NT$63,160).

Robinhood Markets, an electronic trading platform for stocks and options, SoFi, a U.S. digital financial one-stop service platform, and E*Trade, a U.S. brokerage, have no minimum funding requirements for the SpaceX IPO subscription.

However, brokerages warn that if investors quickly sell their newly acquired shares within 2 to 4 weeks after the listing, their eligibility to participate in other IPOs in the future may be restricted.

Investors who are not allocated new shares after subscribing can purchase them on the open market on the listing day or invest indirectly in SpaceX through index funds like the Nasdaq 100. However, if market demand far exceeds the number of shares issued, the price on the first day of listing may fluctuate dramatically.

The report also reminds investors to be aware of the associated investment risks. SpaceX's current valuation is about 110 times its revenue over the past 12 months, reflecting market expectations of rapid growth for many years to come. If the growth does not meet expectations, the risks for investors will increase.

Some analysts have warned that SpaceX's valuation reflects very high market expectations for future growth, leaving almost no room for disappointment.

In its prospectus, SpaceX stated that it does not expect to achieve profitability in the short term. Furthermore, SpaceX belongs to a capital-intensive industry, and factors such as launches, satellite deployment, and regulatory changes could all affect its financial performance.