[Digital Today reporter Sangyeop Oh] Korea Investment Trust Management will participate in SpaceX's initial public offering. Shares allocated through the IPO will be added to a space technology-related exchange-traded fund and a public fund.

Korea Investment Trust Management said on June 4 it will participate in SpaceX's IPO, with the listing scheduled for June 12 local time. It plans to allocate the shares it receives through the IPO to the ACE U.S. Space Tech Active ETF and the Korea Investment Global Space Technology & Defense Fund, both managed by the company.

SpaceX is considered a space technology company set for the largest listing in global stock market history. The amount to be raised through the IPO is estimated at $75 billion to $80 billion, and its valuation is expected to approach $1.75 trillion to $2 trillion.

SpaceX will file for the IPO in the first week of June ahead of the listing, and plans to set the offering price on June 11 local time. Allocations to companies participating in the IPO can be confirmed before the market opens on June 12 local time.

Korea Investment Trust Management will distribute the allocation it secures through the IPO to the two funds and will also pursue additional purchases on the listing day. In particular, the ACE U.S. Space Tech Active ETF plans to raise SpaceX's weighting to as much as 25 percent by adding extra purchases to its allocated shares.

SpaceX's weight in the ACE U.S. Space Tech Active ETF can be checked after June 13 through the ACE ETF website and other channels. Its weight in the Korea Investment Global Space Technology & Defense Fund will be disclosed later through an asset management report.

Kim Hyun-tae (김현태), head of global quant management at Korea Investment Trust Management, said, "Because both funds are active, they can respond immediately on the day SpaceX lists." He added, "Passive products aim to fully replicate an index, so it is difficult to quickly include SpaceX until it is added to the index."

The two funds also hold Echostar, which is assessed as an alternative asset to SpaceX. Korea Investment Trust Management believes Echostar can partially mitigate the risk of buying at a peak if SpaceX share price volatility increases.