The June 12 initial public offering (IPO) of SpaceX is nearly four times oversubscribed due to strong demand from investors.
This means that there are nearly four times as many orders for SpaceX stock as shares available to sell.
Reports say the commercial space company has received $250 billion U.S. of investor orders, more than three times the $75 billion U.S. the company hoped to raise from the share sale.
The deal's oversubscription rate is fast approaching four times the planned offering size, which bankers involved in the deal say is a sign of strong demand.
Currently, most of the demand has come from large institutional investors such as hedge funds and pensions. Although demand from individual retail investors is also expected to be strong.
About 300 institutional investors were expected to have a virtual meeting with SpaceX executives at investment bank Morgan Stanley’s (MS) New York headquarters on June 9.
The IPO is being marketed in a road show by Morgan Stanley and Goldman Sachs (GS), and has also featured presentations from SpaceX CEO Elon Musk.
With a valuation of $1.77 trillion U.S., SpaceX is expected to be the biggest IPO ever when the stock debuts on the Nasdaq (NDAQ) exchange June 9 under the ticker symbol “SPCX.”
SpaceX has set an IPO price for its shares of $135 U.S., although final pricing will occur on June 11 and could change due to the strong demand.
