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SCMP Editorial
Editorial
SCMP Editorial

SpaceX IPO lift-off could test global equity bull run

Set to be the largest stock debut in history, the SpaceX initial public offering could indicate the depth of investor confidence in the AI boom

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A SpaceX Super Heavy booster carrying the Starship spacecraft lifts off on its 12th test flight at Starbase, Texas, on May 22. Photo: Reuters
SCMP Editorial
Editorials represent the views of the South China Morning Post on the issues of the day.
The richest man in the world is about to launch the largest stock debut in history. That fact alone about Elon Musk’s filing in the United States for an initial public offering (IPO) of SpaceX is significant enough. The flotation is expected to raise at least US$75 billion at a whopping valuation of around US$1.8 trillion for the company.
If nothing else, the IPO is about to knock Hong Kong off the top spot for raising capital through listings after the city reclaimed the crown last year following a slump since its 2021 peak. Hong Kong was the world’s top IPO destination for seven years between 2009 and 2019.

Global markets are likely to be hit for a time as Musk’s IPO siphons off capital and tightens liquidity. This comes at a sensitive time as the US Federal Reserve is expected to raise interest rates to curb inflation.

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The anticipated overwhelming investor demand means the SpaceX flotation could be worth more than twice the total US$37.2 billion of combined IPOs reached in Hong Kong in 2025.

Tech stocks in Asia might already be feeling the pain, as reflected by the recent underperformance of Hong Kong’s Hang Seng Tech Index and the Star Market 50 Index on the mainland. Even in the United States, there are signs that some investors are unwinding existing positions to pay for SpaceX IPO shares.

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Besides draining liquidity from Hong Kong and other markets, the IPO will also test the bull case for global equities, which have been led in recent years by the US and are greatly driven by almost unchecked investments in artificial intelligence (AI).

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