SpaceX blocks China and Hong Kong investors from $75 billion IPO

Investing.com -- SpaceX has instructed underwriters managing its $75 billion initial public offering to reject all investment orders from individuals and entities in Hong Kong and China, according to a report from Bloomberg News, citing people with knowledge of the matter.

The company’s website became inaccessible to internet addresses in Hong Kong and Shanghai on Friday.

Banks handling the offering cited US International Traffic in Arms Regulations as the reason for the restrictions. ITAR governs the export of defense-related technologies and data, creating regulatory and compliance risks for the space company.

The IPO is expected to be the world’s largest public offering.

The restrictions represent a broader pattern among US technology and artificial intelligence companies, which are increasingly declining Chinese capital due to national security and data-security concerns. This marks a change from the previous decade, when Chinese venture capital and private equity firms regularly invested in Silicon Valley startups.

You May Also Be Interested In

• Jersey Mike’s Subs files for IPO, set for public market debut
• ​Trump said he was unaware of his earnings from crypto
• Crusoe in talks to raise $3B in funding - Bloomberg