• SpaceX's IPO is heavily oversubscribed, with institutional demand multiple times the available shares.
  • Large long-only funds dominate orders, with some bidding for allocations of $10 billion or more.
  • Banks plan to close order-taking midweek ahead of pricing on June 11, with the company valued at approximately $1.8 trillion.

SpaceX's highly anticipated initial public offering has attracted extraordinary demand from institutional investors, with orders vastly exceeding the supply of shares, according to people familiar with the matter. The offering is reported to be well oversubscribed, driven by large long-only funds that have placed bids for allocations of $10 billion or more. Banks managing the deal are planning to close the order book midweek, ahead of pricing scheduled for June 11.

The IPO, which values SpaceX at around $1.8 trillion, is poised to become one of the largest in U.S. history. Pricing is expected in the mid-$100s per share, with trading potentially beginning on June 12. Retail participation is also being facilitated through select channels, aiming to broaden access to the high-profile listing.

SpaceX, led by founder Elon Musk, operates a diversified business spanning launch services, Starlink satellite internet, and related infrastructure. The strong institutional appetite reflects investor enthusiasm for high-growth technology and space-related assets, particularly in a market environment where mega-IPOs have generated intense interest. "We've seen demand that is unprecedented in scale," one banker involved in the deal said, speaking on condition of anonymity. "Institutional investors are eager to get exposure to SpaceX's growth story."

The oversubscription underscores the shift in investor sentiment toward space technology, with SpaceX seen as a bellwether for the sector. The company's Starlink business, in particular, has been a key draw, offering a recurring revenue model that appeals to long-term investors. Analysts have noted that the IPO could set new precedents for late-stage private tech valuations and allocation patterns.

Banks are now focusing on allocating shares among the flood of orders, with large long-only funds expected to receive priority. Some investors have expressed frustration at the limited supply, with one fund manager noting, "We bid for a significant allocation, but it's clear that demand far outstrips what's available."

The final pricing and allocation will be closely watched, as a strong debut could boost sentiment for other high-profile tech listings. However, some caution remains about execution risks and regulatory hurdles. A successful listing could also have broader implications for the space economy and related policy debates.

Correction: An earlier version of this article misstated the expected pricing date. The correct date is June 11.