Asian investors look for novel ways to join SpaceX’s US IPO excitement

With no direct access to the IPO, traders from Seoul to Shanghai are piling into companies along the space supply chain, industry-themed exchange-traded funds (ETF) and Nasdaq 100 Index-tracking funds in hopes of eventually capturing some of the gains that many expect once SpaceX shares hit the market.

“We have seen rising curiosity from clients across unusually diverse trading profiles and risk appetites,” said Hebe Chen, an analyst at Vantage Global Prime. “The level of interest around SpaceX feels less like a normal IPO inquiry and more like investors trying to secure a seat before the rocket leaves the launch pad.”

The routes vary sharply by market, with Japan and Australia the only countries in Asia-Pacific where retail investors have direct access to the IPO.

In South Korea, home to an army of famously voracious retail investors, some sought allocations through local broker Mirae Asset Securities via a private placement that sold out within one minute, according to Yonhap Infomax News. For everyone else, the next-best trade has become the supply chain and peers.

Companies linked to SpaceX have particularly attracted bets that a fresh influx of capital will ultimately filter down to suppliers and boost the entire industry from satellites and communications equipment to launch infrastructure.