Report: The SpaceX IPO received oversubscription, expected to start trading on June 12th.

SpaceX's first public offering has exceeded the total amount of shares available for issuance, standing at the threshold of setting a record for the largest IPO in history. According to Bloomberg, following one-on-one roadshows with institutional investors, orders for SpaceX's IPO have exceeded the available number of shares. The company plans to issue approximately 5.556 billion shares at a price of $135 per share, with a trading scale of approximately $750 billion and an estimated valuation of about $1.8 trillion. The amount raised in this IPO will exceed Saudi Aramco's 2019 listing record of $29.4 billion by more than double, making it the largest IPO in history. Sources familiar with the matter said that the transaction is expected to be priced on June 11, with trading commencing the next day. However, it is still in the early stages of roadshows, and details may change. The oversubscription indicates that the company has the foundation to raise the full amount of funds needed, providing a clear market signal to investors participating in the offering. The company's official name is Space Exploration Technologies Corp., and it plans to be listed on the Nasdaq and Nasdaq Decksas markets under the ticker symbol "SPCX," with headquarters located in Starbase, Texas. Fixed price pricing breaks the typical practice in the US IPO market SpaceX's use of fixed price pricing is extremely rare in the US IPO market. Usually, US companies announce a price range during roadshows and determine the final pricing based on market feedback. Some companies even price at or above the upper limit of the range, or higher, using oversubscription to create market excitement. Skipping the price range step is more common in European and Asian markets, but in the US, it is rare and mostly seen in a few small companies. Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JPMorgan Chase are jointly leading the transaction, with 18 other banks participating in underwriting. Relaxation of index inclusion rules may lead to accelerated influx of passive funds SpaceX is expected to be quickly included in major stock indices after going public, bringing substantial passive fund inflows. Nasdaq recently changed its rules to allow SpaceX to be included in the Nasdaq 100 index within 15 trading days after listing, significantly shorter than the previous at least three-month waiting period. FTSE Russell has also adopted a similar approach, compressing the waiting period to five trading days. However, S&P Dow Jones Indices has chosen to stay unchanged, maintaining existing index inclusion requirements. This means that SpaceX will not be able to enter the S&P 500 index through a fast track in the short term, as the path to rapid inclusion for large tech stocks through this index is blocked. This article was selected from "Wall Street See and Hear," author: Yang Chen; GMTEight editor: He Yucheng.