Foreign media: SpaceX prohibits investors from mainland China and Hong Kong from participating in IPO subscription

SpaceX plans to issue 555.6 million shares in this IPO, aiming to raise $75 billion. At $135 per share, SpaceX's valuation is estimated to reach $1.75 to $1.77 trillion.

However, according to a Bloomberg report on the 5th, due to security concerns, investors from mainland China and Hong Kong are prohibited from participating in the SpaceX IPO.

It is reported that informed sources revealed that underwriters for the SpaceX IPO have been instructed not to accept orders from investors in mainland China and Hong Kong, citing U.S. restrictions on the export of key technologies.

Sources said that the lead bank responsible for the deal has informed other banks in the underwriting syndicate that, due to regulatory and compliance risks, clients from mainland China and Hong Kong (including private banking clients) are not allowed to participate in the SpaceX subscription.

It is understood that the lead underwriters for the SpaceX listing are Goldman Sachs and Morgan Stanley, with 23 other banks, including JPMorgan Chase, Bank of America, and Citigroup, also involved in the preparation work.

Sources indicated that SpaceX's decision to exclude investors from mainland China and Hong Kong is based on relevant guidance from the U.S. International Traffic in Arms Regulations (ITAR), which aims to regulate the export of defense-related technologies and technical data.

The report stated that although individuals from ITAR-restricted regions are not legally prohibited from subscribing to this offering, a memorandum issued by Citigroup shows that SpaceX has instructed the banks not to allocate any shares to them. Citigroup reminded syndicate members not to market the offering to citizens from ITAR-restricted regions through their wealth management and private banking channels and to identify any such investors already on the institutional book.

Additionally, SpaceX's official website is currently inaccessible to users in mainland China and Hong Kong. Users attempting to access the SpaceX website encounter the error code "1009." Cybersecurity service provider Cloudflare stated that the most common explanation is that the website owner has blocked access from the country or region associated with the relevant IP address.

According to a Reuters report on the 5th, SpaceX's website and IPO documents were inaccessible in mainland China and Hong Kong on Friday, which may limit local investors' participation in this IPO.

Reuters pointed out that SpaceX launched its IPO roadshow in New York on Thursday, with related roadshow materials published on its website, accessible to users in most major Asian markets except mainland China and Hong Kong. Reuters said it is currently unclear why and when SpaceX's website and its IPO materials were restricted in mainland China and Hong Kong.

The report said SpaceX did not respond to requests for comment; spokespersons for the lead banks Goldman Sachs and Morgan Stanley, as well as other banks involved in the IPO preparation, including Citigroup, JPMorgan Chase, and Bank of America, also did not respond to requests for comment.

Bloomberg noted that in recent years, U.S. technology and artificial intelligence companies have become increasingly cautious about accepting funding from Chinese investors, reflecting heightened scrutiny by U.S. regulators and clients over potential national security and data security risks. Companies seeking U.S. government contracts or operating in sensitive sectors often strive to avoid having shareholders who might trigger scrutiny from U.S. authorities or raise concerns among potential clients.