TechFlow reported on June 05, citing Bloomberg, that people familiar with the matter said 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. According to the report, the restriction is connected to U.S. limits on exports of key technologies.
The lead underwriting banks responsible for the transaction have also informed other banks in the underwriting syndicate that clients from mainland China and Hong Kong are not allowed to place orders. The scope described in the report includes private banking clients, meaning those customers would be excluded from the subscription process handled by the syndicate.
Bloomberg said the move was mainly driven by regulatory and compliance risk considerations. The arrangement has not been publicly disclosed. The input information did not name the underwriting banks and did not include a public response from SpaceX or the relevant underwriters.