SpaceX's highly anticipated initial public offering, valued at around $75 billion, is barring investors from mainland China and Hong Kong due to U.S. export controls on critical technology, according to people familiar with the matter cited by Bloomberg. The lead underwriter for the deal has instructed the entire syndicate not to accept orders from clients in those regions, including private banking clients.
The restriction, which has not been publicly disclosed, is driven by regulatory and compliance risks. SpaceX's rockets, satellite internet services like Starlink, and other technologies are subject to strict U.S. export control laws, which also extend to equity fundraising activities involving foreign investment. As a result, underwriters must reject any subscriptions from restricted areas to avoid potential violations.
The move is the latest example of U.S. export control policies limiting Chinese capital in sensitive technology sectors. Previous curbs have targeted semiconductor, artificial intelligence, and aerospace industries. The SpaceX IPO restriction underscores the tightening grip on foreign participation in strategic tech financing, which could set a precedent for future high-tech listings.