By Isla Binnie and Echo Wang<\/p>\n
NEW YORK, June 5 (Reuters) – SpaceX has drawn investor demand of about $150 billion for its IPO, about double the $75 billion it is seeking to raise, \u200csaid two people familiar with the matter on Friday.<\/p>\n
An oversubscription rate of two times would \u200cbe considered modest for most highly anticipated market flotations, but bankers and investors said that demand is impressive for the SpaceX offering \u200bsince it is the largest IPO ever.<\/p>\n
The company remains in the early stages of the marketing process, sources cautioned. Investor demand is still subject to change before the IPO prices next week.<\/p>\n
The sources added that some large institutional investors tend to submit orders late in IPO processes, and that current subscription figures reflect indications of \u200cinterest rather than final allocations, which \u2060will be set at pricing.<\/p>\n
The sources requested anonymity because the matter is confidential. SpaceX did not respond to a request for comment. Bloomberg reported on Friday that the \u2060IPO was oversubscribed.<\/p>\n
SpaceX launched a campaign this week to persuade investors that its IPO is a gateway to trillions of dollars in new markets being opened by its space-launch, internet-connection and AI businesses.<\/p>\n
“Lots of people will have to \u200bexplain why \u200bthey don’t own it rather than justifying a decision \u200bto buy it,” said a hedge fund \u200cmanager.<\/p>\n
The roadshow presentation emphasized the uniqueness of SpaceX’s rocket-launching business, which it said has accounted for the lion’s share of mass lofted into orbit in the past three years, and the strength of the company’s Starlink internet business.<\/p>\n
SpaceX also touted a $23 trillion market opportunity it says awaits its artificial intelligence offerings, adding it is the only company that can escape the limitations of earthbound businesses and use space to build AI \u200ccompute capacity that it expects to draw enormous demand in \u200bthe future.<\/p>\n
U.S. electricity generation and computer-capacity growth have lagged behind that \u200bof China, partly because of hurdles facing \u200blarge projects in the U.S., according to SpaceX. The company said that shortfall can \u200cbe remedied by putting data centers and \u200bother infrastructure in space using \u200bSpaceX launches.<\/p>\n
“By dramatically reducing the cost of access to space, we have been able to expand our mission to address some of the Earth’s most pressing challenges, including bridging the digital divide \u200bby aiming to connect over three \u200cbillion unconnected people to the internet and humanity’s collective knowledge,” SpaceX said in the roadshow \u200bpresentation.<\/p>\n
(Reporting by Isla Binnie and Echo Wang in New York; additional reporting by Suzanne McGee; \u200bediting by Colin Barr, David Gregorio and Nia Williams)<\/p>\n","protected":false},"excerpt":{"rendered":"By Isla Binnie and Echo Wang NEW YORK, June 5 (Reuters) – SpaceX has drawn investor demand of…\n","protected":false},"author":2,"featured_media":718658,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[45,49,48,27057,260053,6888],"class_list":["post-718657","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ca","tag-canada","tag-institutional-investors","tag-investor-demand","tag-spacex"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/718657","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=718657"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/718657\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/718658"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=718657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=718657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=718657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}