Investor interest in SpaceX's planned initial public offering has reportedly reached about double the level of the shares the company hopes to sell, according to two people familiar with the situation. Those sources said demand totals roughly $150 billion against a $75 billion target, putting the offering about two times oversubscribed.
While a two times subscription rate would be viewed as modest for some high-profile listings, bankers and investors described the level of demand as notable given the size of the proposed deal - the largest IPO on record. Sources cautioned, however, that the company remains in the early stages of its marketing push and that indications of investor demand can change ahead of formal pricing.
SpaceX currently plans to set the IPO price on June 11, with trading expected to begin on Nasdaq the following day. The people who provided the oversubscription estimate asked not to be identified because the details of the bookbuilding are confidential. SpaceX did not reply to a request for comment.
News outlet reporting earlier on Friday reached similar conclusions about the oversubscription, according to one of the people. Market participants noted that demand for an offering of this scale - even if only two times oversubscribed - represents a significant aggregation of investor interest given the sheer dollar volumes involved.
The oversubscription figure cited by the sources implies that, at this stage, investor orders would cover the full $75 billion supply twice over, generating near-term demand equal to approximately $150 billion. But the sources emphasized that such book indications remain provisional until the deal is priced and allocations are finalized.
For now, the process continues under confidentiality, and market participants will watch whether indicated demand holds as pricing approaches next week.