UK regulator probes market impact of SpaceX listing
The Financial Conduct Authority has spent the past week gathering information from major British investment platforms ahead of the expected $1.8 trillion listing of spacex on Nasdaq on Friday.
According to four investment house directors familiar with the matter, the regulator has requested daily data on customer interest in the company, including website traffic linked to investment activity and investment flow figures, News.Az reports, citing POLITICO.
The FCA is seeking to assess market conditions before what is expected to be a record initial public offering and is using its supervisory powers to monitor the potential impact on the British financial sector.
The regulator is also paying close attention to the effect of the listing on the UK’s new public offer platform regime, which allows listed companies to issue additional shares in a process similar to crowdfunding. One investment house director said the FCA wanted to closely monitor how the rules perform, describing the offering as the first large-scale use of the framework involving retail investors in the UK.
Musk’s satellite, rocket and artificial intelligence company is expected to offer about 555.6 million shares priced at $135 each. The sale would raise approximately $75 billion and value the business at around $1.8 trillion.
The previous record for a listing was set in 2019, when Saudi Aramco raised $25.6 billion.
Musk has targeted retail investors, with UK investors expected to receive around £1.5 billion worth of shares. The company’s inclusion on Nasdaq is also expected to increase exposure through tracker funds and trading applications.
However, the directors said some investment platforms may limit exposure because of concerns over possible market volatility. According to a report, spacex’s valuation is based on ambitious long-term goals, including reaching Mars with reusable rockets, launching data centres into space and expanding artificial intelligence capabilities.
Analysts at Morningstar value spacex at $780 billion, pointing to significant risks related to strategic execution, technological development, market conditions, regulation, artificial intelligence expansion and dependence on key individuals.
By Leyla Şirinova
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