SpaceX IPO Draws Billions in Orders From Middle Eastern Funds

Summary

Caroline Hyde breaks down the SpaceX IPO, detailing massive demand from Middle Eastern sovereign wealth funds, forced passive fund buying due to fast-tracked Nasdaq index inclusion, and the cult of Elon Musk that assigns a 95x revenue multiple despite governance concerns and historical IPO hangovers.

• SpaceX IPO intends to raise $75 billion at a $1.8 trillion valuation with a $135 offer price.
• Gulf wealth funds placed billions in orders; Kuwaiti investment fund alone requested $5 billion.
• 30% of the deal is allocated to retail investors, adding to the demand frenzy.
• Fast-track Nasdaq inclusion will compel passive funds to buy, likely pushing shares higher.
• Governance pushback from New York/California controllers and Elizabeth Warren has not derailed interest.
• Historical big-tech IPOs often sink after lock-ups expire, but many expect SpaceX to remain in demand.
• Some market participants speculate that SpaceX and Tesla will eventually merge.