SpaceX IPO to Restrict Orders From China, Hong Kong Investors Under US Security Rules

Investors in China and Hong Kong are set to be restricted from subscribing to shares in SpaceX's planned initial public offering, Bloomberg reported, as Elon Musk's space company moves toward an IPO.

Banks leading the offering have told members of the underwriting syndicate not to accept share orders from investors in China and Hong Kong, Bloomberg reported on June 5.

People familiar with the matter said the move stems from internal guidelines tied to the US International Traffic in Arms Regulations, or ITAR. The US rules restrict the overseas transfer of defense-related technology and technical data.

The restrictions apply broadly to investors in China and Hong Kong, including private banking clients, the people said.

Lead underwriters Goldman Sachs and Morgan Stanley did not immediately comment on the report.

Attempts to access SpaceX's website from Hong Kong and Shanghai on June 5 were also met with a blocking notice, according to the report. The message said access from those internet protocol, or IP, addresses was restricted.