Korea Investment Management to Participate in SpaceX IPO, Immediate Allocation to Space ETF and Fund

Korea Investment Management announced on June 4 that it will participate in the initial public offering (IPO) of SpaceX, a space technology company set to be listed on the US stock market on June 12 (local time).

The SpaceX shares allocated through this IPO will be distributed to the "ACE US Space Tech Active" ETF and the "Korea Investment Global Space Technology & Defense" fund, both managed by Korea Investment Management.

SpaceX is attracting tremendous attention as it is expected to achieve the largest listing in the history of global stock markets. The market anticipates that the capital raised through this IPO will amount to between $75 billion and $80 billion, with the company's valuation projected to reach up to $200 billion (approximately 270 trillion won).

SpaceX plans to determine the public offering price on June 11 after completing its IPO filing in the first week of June, just before listing. The final allocation for participating institutions, including Korea Investment Management, will be confirmed before the market opens on the listing day, June 12.

Korea Investment Management plans to not only distribute the shares secured through the IPO to the ACE US Space Tech Active ETF and the Korea Investment Global Space Technology & Defense fund, but also to make additional purchases on the listing day. In particular, the ACE US Space Tech Active ETF aims to raise its SpaceX allocation to up to 25% by combining IPO allotments with additional purchases. The proportion of SpaceX in the ACE US Space Tech Active ETF can be checked immediately after June 13 via the ACE ETF website, and the allocation within the Korea Investment Global Space Technology & Defense fund will be disclosed later through the asset management report.

Hyuntae Kim, portfolio manager in the Global Quantitative Management Department at Korea Investment Management and manager of the ACE US Space Tech Active ETF and the Korea Investment Global Space Technology & Defense fund, stated, "Both funds are active types, which enables immediate responsiveness on SpaceX's listing day." He emphasized, "A key differentiator is that passive products, which are managed to fully replicate the index, cannot quickly include SpaceX until it is added to the index."

Safety measures have also been put in place to guard against volatility. Kim added, "Another feature of both funds is the inclusion of EchoStar, a proxy (alternative) asset for SpaceX. If heightened buying activity occurs due to early inclusion in the Nasdaq 100 index, leading to increased volatility in SpaceX's share price, EchoStar can help mitigate the risks of overshooting and high-price entry."

This content was produced with the assistance of AI translation services.