SpaceX IPO Multiple Times Oversubscribed

**SPEAKER_1** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News. Bloomberg Tech is live from coast to coast, with Caroline Hyde in New York, and Ed Ludlow in San Francisco.

**Ed Ludlow** (0:22)
This is Bloomberg Tech coming up. Wall Street can't get enough of SpaceX with demand from big institutional investors and the biggest IPO in history way oversubscribed.

**Caroline Hyde** (0:31)
Plus, Google backstops anthropic data centers and Silicon Valley races to build AI infrastructure with ever more intertwined deals.

**Ed Ludlow** (0:38)
And Oracle reports after the closing bell, it's a race between building data centers and booking AI cloud revenues.

**Caroline Hyde** (0:45)
AI, AI, AI, and space. SpaceX's oversubscribed IPO is where we have to start, Ed, because the geographical reach of the level of demand, we've been mesmerized by this record breaking.

**Ed Ludlow** (0:58)
It's out of this world, I don't apologize for that for one bit. The state of play is this, right? The order book for institutional investors closes 4 p.m. Eastern today. And as we've reported, there are several long only asset managers, basically, that want $10 billion worth of shares.

**Caroline Hyde** (1:11)
$75 billion offer.

**Ed Ludlow** (1:13)
Right, so somebody is going to miss out. Now, the retail investor can still place orders, I think through Thursday on whatever platforms are available, but they're not guaranteed to get hold of those shares either. So that's the state of play. And believe it or not, there is a roadshow happening in the background.

**Caroline Hyde** (1:27)
And we're learning ever more on that roadshow. That's the entire point. We're understanding the transparency of the business model. Are we learning much about those orbital data centers?

**Ed Ludlow** (1:34)
Yeah, I think the focus and the pitch has still been, let us explain orbital data centers. That brings us to today's big number, $250 billion. That's the total amount of SpaceX IPO orders. We've reported this morning, one to five billion of which is coming from Saudi, Kuwait, other Middle East funds, sovereign funds. That's according to sources. That's the absolute latest. Join us now to talk all things SpaceX. It's IPO, also the general landscape, Peter Singlehurst, head of private companies at Bailey Gifford. We just know SpaceX is a really important investment for you guys prior to the offering.
Let's start there. What does this, the biggest IPO in history represent to you and to the firm, and to I guess support the thesis when you first made the investment way back when?

**Peter Singlehurst** (2:24)
I think that the SpaceX IPO needs to be seen as the culmination of a trend, which has been playing out now for 15 years or longer, of companies staying private for longer. And this is something that we started to see in 2012, when we first started investing in private companies. Now, we didn't think that companies would get this big and stay private this long, but here we are with SpaceX going public at something like a $1.8 trillion valuation. That's 900 times larger and more valuable than Tesla was when it went public in 2012 So on the one hand, this is a story of a truly exceptional company which has compounded its growth at a very high rate. On the other hand, it's a story of a bigger structural trend of companies staying private longer and more and more return to crewing within the high growth private markets.

**Caroline Hyde** (3:17)
And Peter, to that end, when you think about Tesla after it's gone public, it was a volatile ride, but it's 25,000 percent higher than when it listed. And so, will we see a level of returns, do you think, in the public market? Or does that have to be in some ways pushed against? Are the meat and bones of returns going to have happened to private investors?

**Peter Singlehurst** (3:40)
I think mathematically it's very hard to see how you could see SpaceX delivering the same kind of returns as a public company, as Tesla did. But I think what this speaks to is a requirement for investors to have exposure to growth in both the private and the public markets.
The world has been set up to almost divide these things and say there's kind of private growth and there's public growth. And these things are different. And we've taken a different approach. We've sort of taken the view that actually, if you want to do growth equity investing, and you want to do it properly, you have to do it in the private markets and you have to do it in the public markets. And what our clients are and beneficiaries who are predominantly pension funds, what they need and what they ask from us is that we give them exposures to the world's best growth stage companies, starting in the private markets, earning the returns that we can generate there. And then also only goes in the public markets from within our public funds to make sure that they're still capturing that growth even once companies transition into the public markets.