Domestic exchange-traded funds (ETFs) that aimed to benefit from the SpaceX IPO have faced setbacks. Despite a significant influx of investor funds, they were unable to secure any shares of the initial public offering (IPO).
On June 14, financial industry sources reported that Mirae Asset Securities, which participated in the SpaceX IPO process, did not receive any shares from the final allocation. This has forced Korea Investment Trust Management to revise its plans regarding the inclusion of SpaceX shares in its portfolio.
Korea Investment Trust Management announced that it could not incorporate SpaceX shares as initially planned. The firm had intended to increase the allocation of SpaceX within its 'ACE U.S. Space Tech Active ETF' to as much as 25% by utilizing shares secured through the IPO and subsequent market purchases.
Industry experts had viewed securing shares during the IPO phase as a key differentiator, allowing ETFs to reflect profits from initial price surges in their performance. However, the failure to secure shares has effectively nullified this strategy.
In response, Korea Investment Trust Management opted to purchase SpaceX shares directly on the market on the day of its listing. The specific allocation percentage will be disclosed in the asset composition report (PDF) before the domestic market opens on June 15, considering fairness among investors.
A representative from Korea Investment Trust Management stated, "This outcome is a result of the unique characteristics of the U.S. IPO market and high competition. We understand the significant expectations investors had regarding the inclusion of SpaceX shares and regret the inability to secure any."
Previously, Mirae Asset Securities participated in the underwriting syndicate for SpaceX's IPO, which listed on June 12 (local time), but failed to secure any shares from the final allocation. Initial documents indicated that Mirae Asset was set to receive 2,314,815 shares, but it was later confirmed that no shares were allocated to investors.
Investor interest in SpaceX has been strong. According to the Korea Exchange, as of June 12, individual investors had net purchased approximately 1.88 trillion won ($1.5 billion) in four U.S. space-themed ETFs that announced plans to include SpaceX.
Plans for SpaceX inclusion in other space ETFs, which did not rely on direct allocations, are expected to proceed as scheduled. These ETFs plan to utilize provisions established during the product design phase to incorporate SpaceX shares within two business days following its listing.
* This article has been translated by AI.
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