"I'll Put in All My Money" "Like Winning the Lottery": 457 Trillion Won Pours In... The Global Investment Craze Shakes the World [SpaceX Investment Analysis]

Two-Thirds of Korea's Annual Budget Poured In

Global Investment Frenzy for SpaceX IPO

Funds Exceed Four Times the Target

Massive Participation from U.S., Japanese, and Korean Investors

Japan Eyes Further Expansion Into U.S. Stock Investments


Early Stock Price Surge Expected After Listing

Concerns Rise Over Capital Concentration and Volatility

On June 12 (local time), SpaceX will be listed on the NASDAQ in the United States. According to Bloomberg, demand for the offering has exceeded four times the target amount. Based on the IPO target of 75 billion dollars, investor demand has surpassed 300 billion dollars (approximately 457 trillion won). This means that funds equivalent to two-thirds of Korea's total annual expenditure budget for this year, which is 72.79 trillion won, have been concentrated on a single company's IPO. The massive influx of capital has come not only from the United States but also from countries around the world, including Korea and Japan. In particular, in Japan, some are even voicing hopes for a revival of the securities industry by fostering so-called 'West-savvy retail investors' through this IPO.

Reuters Yonhap News

As investors focus on the stock price after the listing, many expect the share price to rise on the first day due to overwhelming demand. While there are concerns about overheating, most forecasts for the initial stock price are positive, especially since SpaceX is expected to be included in indices such as NASDAQ within 15 days of listing.

SpaceX raised 75 billion dollars through this IPO, with more than four times the amount sought in the subscription process. The investment frenzy from all over the world can only be described as a 'craze.' Demand was explosive, especially in the United States. It was reported among IPO analysts that some received up to 20 inquiry calls from investors in a single day. This is considered unusual, as even the most popular stocks typically receive only about 10 such calls. Bloomberg also reported that, due to far more subscriptions than expected, several institutional investors placed orders of over 10 billion dollars each for SpaceX's IPO.

Elon Musk, the leader of SpaceX, especially captivated investors and helped fuel this frenzy. Bloomberg noted that Musk captivated attendees at a roadshow held with JPMorgan, explaining long-term visions such as space travel, lunar vacations, and colonizing Mars in detail. Sid Fazdipati, founder and chairman of Aion Capital, said, "It was an incredible event," adding, "I think this company will become the largest and most iconic company in human civilization."

The Saudi Arabian Public Investment Fund (PIF) and the Kuwait Investment Authority (KIA) reportedly placed orders ranging from 1 billion to 5 billion dollars each. In Australia, some individual investors expressed frustration about having to wait up to an hour to inquire about participating in the IPO.

A mural appeared in Brownsville, Texas, USA. It depicts Elon Musk along with the phrase "Occupy Mars" ahead of SpaceX's initial public offering (IPO). (Brownsville) USA=Reuters Yonhap News.

Japanese securities firms see SpaceX's listing as a golden opportunity to attract West-savvy retail investors, and are engaging in aggressive competition to bring in new clients. In Japan, Mizuho Financial Group (MFG) participated in the SpaceX IPO syndicate, making it the only country in Asia where individual investors can subscribe to the IPO. Mizuho Securities, SBI Securities, and Rakuten Securities are acting as sales channels and have been accepting IPO applications since June 5.

Due to Japan's practice of not disclosing the scale of advance subscriptions, the exact competition rate is unknown. However, the size of the Japanese offering has already increased from the initial 2 billion dollars to 2.5 billion dollars. This adjustment was made as institutional investor demand was much stronger than expected.

There is also strong enthusiasm among individual investors. On the Yahoo Finance community, some comment, "I'm trying to put in all the money I have just to get an allocation," while others say, "With so many people applying, winning even one share feels like winning the lottery." In consideration of this, Mizuho Securities is not accepting new customer applications for this offering and is only processing applications from existing branch customers. Since allocations are not made by lottery, but by other means, many investors believe that the threshold for allocation will be raised, reflecting previous trading activity.

After SpaceX is listed, most Japanese securities firms will allow stock purchases. In preparation, the industry is offering various incentives to attract West-savvy retail investors. Since 2023, stock trading commissions within Japan have been abolished, weakening the revenue base for securities firms. With the SpaceX IPO, there is an atmosphere of expanding U.S. stock trading, which generates commission revenue.

In Korea, as it is difficult for individual investors to participate in the IPO directly, they are seeking 'alternative routes.' The most typical method is indirect investment through space-related exchange-traded funds (ETFs). According to Daishin Securities, this year, 3.5 trillion won has flowed into Korean space-related ETFs, while 4.08 billion dollars have flowed into U.S.-listed space ETFs. In particular, Mirae Asset Global Investments' 'TIGER U.S. Space Tech' attracted 1.88 trillion won in the past month alone.

While there were some limited opportunities for IPO subscriptions, institutional restrictions existed. Mirae Asset Securities, which participated in the SpaceX IPO syndicate, conducted public offerings for institutional and professional investors only, and both the first and second rounds sold out almost immediately. However, on June 11, Mirae Asset Securities granted the right of withdrawal to investors who had subscribed to SpaceX IPO shares until noon. This was because domestic institutional and individual investors who received allocations from Mirae Asset Securities could not trade SpaceX IPO shares on the listing day. This issue arose due to a mismatch between U.S. IPO procedures and domestic deposit and settlement processes, and it is understood that emergency measures were taken out of concern for investor protection, given the high volatility expected on the first day of trading.

Takahide Kiuchi, Chief Economist at Nomura Research Institute (NRI), said, "This IPO could serve as an opportunity to expand U.S. stock investment in Japan," but also expressed concerns about the potential impact on global and Japanese stock markets due to future share price volatility.

Some have raised concerns that global capital pouring into SpaceX could temporarily have a negative effect on the Japanese stock market. In a column, Mariko Mabuchi, an analyst at Pisco, wrote, "It is only natural that when a new investment destination emerges, funds flow out of existing stocks," and pointed out that "sectors such as semiconductors, which have risen significantly, or emerging markets that previously saw little inflow, could be temporarily affected."

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