Underwriters for SpaceX's roughly $75 billion initial public offering have been instructed not to accept subscription orders from investors in mainland China and Hong Kong, people familiar with the matter told Bloomberg. The restriction stems from U.S. controls on the export of sensitive technologies, and the lead bank on the deal has communicated to other banks in the syndicate that clients from mainland China and Hong Kong — including private banking clients — are not permitted to place orders.
The move is primarily driven by regulatory and compliance risk considerations, and the arrangement has not been publicly disclosed, the report said. As one of the world's most valuable private space companies, SpaceX's IPO is highly anticipated; the investor restriction highlights Washington's vigilance over capital flows from China into critical technology sectors.