Reuters quoted sources as saying that Elon Musk's SpaceX attracted investment requests exceeding $250 billion in what could become the largest initial public offering ever, far exceeding the $75 billion the company is seeking to raise.
Sources said on Tuesday that the subscription coverage ratio for the deal was between 3.5 and four times the size of the planned offering, which bankers and investors say is the latest indication of strong demand, Reuters reported on Friday.
One source told Reuters that long-term investment funds had submitted what he described as substantial applications. Another source said that Musk briefly joined some Zoom meetings with potential investors.
Sources explained that the company is still in the midst of the marketing process for the offering.
A source said that SpaceX President Gwynne Shotwell and Chief Financial Officer Brett Johnson are expected to participate Tuesday in a luncheon at Morgan Stanley's Midtown Manhattan headquarters with about 300 investors, a meeting hosted by the bank's co-chairman Dan Simkowitz.
Investor demand remains subject to change ahead of the initial public offering's pricing, which is expected to be revealed Thursday afternoon.
Sources indicated that some major investors tend to submit their applications in the later stages of the initial public offering process.
The offering comes at a time of sharp market volatility, with the Nasdaq Composite Index falling in trading on Tuesday after posting its biggest drop in more than a year on Friday.
Bitcoin also fell 2.8 percent, dropping about 37 percent from its highest level in January.
Some analysts say one factor behind the market decline may be selling by potential SpaceX buyers seeking to raise funds for the initial public offering.
