SpaceX IPO to Exclude China, Hong Kong Investors Under US Security Rules
Summary
- SpaceX is moving ahead with an IPO, and investors in China and Hong Kong are set to face limits on subscriptions to the share sale.
- Banks leading the IPO told syndicate members not to accept orders for the share sale from investors in China and Hong Kong.
- A notice also reportedly appeared saying access to the SpaceX website had been blocked in Hong Kong and Shanghai.
Forecast Trend Report by Period
As Elon Musk’s SpaceX moves toward an initial public offering, investors in China and Hong Kong are set to be barred from subscribing to the share sale.
Bloomberg reported on June 5 that banks leading the IPO told syndicate members not to accept orders from investors in China and Hong Kong.
People familiar with the matter said the move was based on internal guidance related to the US International Traffic in Arms Regulations, or ITAR. The US rules restrict the overseas transfer of defense-related technology and technical data.
The restriction applies broadly to investors in China and Hong Kong, including private banking clients, the people said.
Lead underwriters Goldman Sachs and Morgan Stanley did not immediately comment.
SpaceX’s website also displayed a notice to users attempting to access it from Hong Kong and Shanghai on June 5, according to the report. The message said access was restricted for internet protocol addresses in those regions.
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