[DigitalToday reporter Hyunwoo Choo] The initial public offering of SpaceX, led by Elon Musk, is nearing the end of its subscription period amid a surge in demand. Multiple institutional investors have each placed orders of at least $10 billion, Bloomberg and Reuters and other foreign media reported on June 8 (local time).

According to foreign media reports, total orders have already reached $150 billion, more than twice SpaceX’s $75 billion target. SpaceX has offered 555.6 million shares at a fixed IPO price of $135 per share, valuing the company at $1.77 trillion. Underwriters have also been granted an option to buy an additional 83.33 million shares.

If the offering is completed, it will be the biggest IPO on record, surpassing Saudi Aramco’s $29.4 billion listing in 2019.

■ 30 percent allocated to retail investors... subscriptions available via Robinhood, Fidelity and Schwab

The most unusual feature of this IPO is a large allocation for retail investors. SpaceX said it will allocate IPO shares directly through major online brokerage platforms such as Robinhood, Fidelity and Charles Schwab. Unlike typical IPOs, where retail investors often buy in the market after institutions are allocated shares at higher prices, retail participants this time can take part at the IPO price.

Participation requirements vary by platform. Charles Schwab requires a minimum account balance of $100,000, while Fidelity lowered the threshold to $2,000. Robinhood, SoFi and E*Trade have no minimum balance requirement. Demand far exceeds supply, however, meaning actual allocations could be significantly smaller than the amounts requested.

■ Starlink seen as key engine... Morningstar warns of 'overvaluation'

Market views are mixed on SpaceX’s share outlook. The core of the bullish case is Starlink, its satellite internet service. The argument is that if Starlink, the only profitable SpaceX business unit, reaches 100 million subscribers by 2030, the current IPO price could be justified.

By contrast, Morningstar put SpaceX’s fair value at $780 billion, saying it is less than half the IPO target valuation. It also warned that integration with generative AI company xAI could become a “real risk” of value impairment.

A Danish pension fund also refused to take part in the subscription, citing a dual-class share structure in which Elon Musk’s voting rights amount to about 79 percent. The IPO price will be finalised on June 11 (local time), and trading on Nasdaq is expected to start on June 12 under the ticker “SPCX”.

South Korean investors cannot participate in the IPO subscription with only a brokerage account that allows U.S. stock trading. That is because all allocation platforms, including Robinhood and Fidelity, are for U.S. residents. Buying “SPCX” in the market through an overseas stock account after Nasdaq trading begins on June 12 is a realistic alternative.