SpaceX IPO: Japanese investors sought over $6B worth of shares
What's the story
Japanese investors expressed a strong interest in SpaceX's record-breaking initial public offering (IPO), seeking over ¥1 trillion ($6.2 billion) worth of shares. The majority of this demand came from retail investors, two sources familiar with the offering told Reuters. The massive interest matched global demand for Elon Musk's rocket and satellite communications company, which raised $75 billion in the world's largest public listing.
Share allocation
Japanese investors allocated $2.2 billion worth of shares
Despite the massive demand, Japanese investors were allocated $2.2 billion worth of shares in the IPO. The oversubscription rate was similar to global interest in SpaceX, which drew $250 billion from investors worldwide. Mizuho Securities USA, an arm of Mizuho Financial Group that was the sole Japanese underwriter for this IPO, did not comment on the total scale of demand from Japan-based customers.
Investor interest
Spike in account openings at Mizuho Securities
A spokesperson for Mizuho Securities revealed that an internal survey found over 1,000 customers based in Japan had applied for allocations of over ¥100 million ($624,500). Some investors even applied for more than ¥10 billion. The spokesperson also noted that applications to open accounts with their firm in the first third of June were four times higher than the average over the last year.
Information
Retail allocation in SpaceX's IPO
The IPO had an unusually high allocation for retail investors, of up to 30%. Investors could get more shares if underwriters decide to sell additional stock, a decision usually taken within 30 days after the offering.