SpaceX IPO Fever Drives Demand for Asian Proxy Stocks
Investors across Asia are buying shares in satellite component manufacturers and space-themed ETFs to gain exposure to SpaceX ahead of its June 11 pricing. Traders are targeting regional suppliers in Taiwan and China as restrictions limit direct retail participation in the rocket company's blockbuster public offering.
Investors in Singapore and across Asia are buying SpaceX supply chain proxies ahead of the rocket company's $75 billion IPO. SpaceX targets a $1.75 trillion valuation with a final price set for June 11. Restricted access to the primary listing forces regional traders into satellite and component manufacturers to capture gains.
Retail investors may receive 30% of the IPO allocation. However, underwriters have barred participants from China and Hong Kong, according to Bloomberg. Traders are instead targeting regional suppliers to ride the momentum, including retail investor Hu Xiaobin from Anhui province, who bought Shenzhen Sunway Communication Co Ltd and Western Superconducting Technologies Co Ltd before exiting both positions ahead of the listing.
