TechFlow reported on June 05 that, according to Bloomberg, people familiar with the matter said 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. The report said the restriction is related to U.S. limits on exports of key technologies.
Lead bank passes restriction to the underwriting syndicate
The lead underwriting bank responsible for the transaction has further notified other banks in the underwriting syndicate that clients from mainland China and Hong Kong are not allowed to place orders. Bloomberg’s report stated that the restriction also covers private banking clients, placing those clients within the scope of the order ban.
According to the report, the move is mainly driven by regulatory and compliance risk considerations. The arrangement has not been publicly disclosed, and the report did not provide further public comments from SpaceX or the underwriting banks involved in the transaction.