50-100 billion US dollars! "World's largest asset manager" BlackRock considers investing in "largest IPO in history" SpaceX.

BlackRock is interested in participating in SpaceX's first public offering, a move that could make the world's largest asset management company a key anchor investor in the largest IPO in history. According to reports citing sources familiar with the matter, BlackRock is considering participating in SpaceX's offering with a size of $5 billion to $10 billion. The final investment amount will depend on SpaceX's IPO pricing and other related factors. SpaceX is expected to start its official roadshow as early as early June, with the IPO expected to raise as much as $75 billion. If the deal is reached, this would be a rare large single subscription in an IPO in nearly 25 years. According to statistics from investment bankers, there have been less than 12 cases in the past twenty-five years where the subscription size reached or exceeded $1 billion in an IPO. For SpaceX, which is actively seeking anchor investors, the massive funding support from BlackRock is expected to attract more large institutional investors to follow suit. Lagging behind its peers in terms of holdings, BlackRock plans to bolster its position in SpaceX through the IPO. BlackRock has previously held shares of SpaceX through private channels. According to publicly available mutual fund disclosure documents, its existing stake is valued at least $300 million. However, compared to its peers such as Fidelity, Baillie Gifford, and Franklin Templeton who have built up large positions, BlackRock's holding size is significantly smaller. The potential IPO investment will utilize BlackRock's actively managed funds with a size of $536 billion. According to reports citing sources close to the deal, given the unprecedented size of this IPO, SpaceX will require multiple institutions to each invest tens of billions of dollars. In anticipation of SpaceX's listing, BlackRock CEO Larry Fink has become more positive about Musk's public statements. Earlier this year, Fink personally hosted an interview with Musk at the Davos Forum, praising the investment return of Tesla. "Imagine, if a large number of pension funds followed Musk's IPO, the return would be considerable," Fink said on stage. He concluded the interview by stating, "There are too many misunderstandings about Musk. I can tell you, he is my true friend. I continue to learn from him, and his future vision inspires me." Risk does not dampen enthusiasm, institutional investors are generally optimistic To prepare for the IPO, SpaceX organized a two-day large-scale investor visit last month, which included visits to the Starbase launch site in southern Texas and the xAI data center in Memphis. Participants included delegations from institutions such as BlackRock, T. Rowe Price, Capital Group, and Fidelity Investments. According to reports, an asset management company investor who participated in this trip said, "The logic of betting on the long side is simple: you have never lost money following Musk." This statement reflects Wall Street's overall attitude towards SpaceX - despite visible risks, institutional investors generally lean towards participating in this historic transaction. High valuation and governance risks coexist Despite the optimistic market sentiment, SpaceX's IPO is not without controversy. The company plans to go public with a very high price-to-sales ratio, its core AI strategy is still in the adjustment stage, several key AI researchers have already left, and the cornerstone of the space business growth - a fully reusable large rocket - is still in the testing stage. In terms of corporate governance, investors' rights will be strictly limited. According to excerpts from a confidential SpaceX prospectus obtained by The Information, the company plans to explicitly warn investors in the document that "forced arbitration" clauses will limit shareholders' legal recourse. In addition, Musk will hold special voting shares with 10 votes per share, leading to a high concentration of control in his hands. Nevertheless, investors are mainly interested in SpaceX's overwhelming lead in the rocket launch field and the commercial imagination it brings by leveraging this lead to transport high-value payloads to space - such as advanced chips that support AI model operations. However, finding a balance between unprecedented high valuation and significant concessions in governance will be the core proposition testing investors' beliefs in this IPO. This article is sourced from "Wall Street See News", author: Li Jia, edited by GMTEight: Zhang Jinliang.