TechFlow reported on June 05, citing Bloomberg, that underwriters for SpaceX’s roughly $75 billion initial public offering have been told not to accept subscription orders from investors in mainland China and Hong Kong. According to people familiar with the matter cited in the report, the instruction is linked to U.S. restrictions on exports of key technologies.
Lead underwriter notified other banks in the syndicate
The lead underwriting bank responsible for the transaction has further informed other banks in the underwriting syndicate that clients from mainland China and Hong Kong are not allowed to place orders. The restriction includes private banking clients, according to the Bloomberg report referenced by TechFlow.
An IPO, or initial public offering, refers to a company’s first sale of shares to public investors as part of a public-market financing process. In this case, the reported arrangement applies to SpaceX’s planned offering valued at about $75 billion.
Bloomberg said the move was mainly driven by regulatory and compliance risk considerations. The arrangement has not been publicly disclosed at this stage, and the information cited in the report came from people familiar with the matter. TechFlow published the item as a 7x24H news flash.