PIF looks to protect SpaceX turf as Elon hurtles toward an IPO

PIF looks to protect its SpaceX turf with IPO anchor bid: The Public Investment Fund (PIF) is considering a USD 5 bn anchor investment in SpaceX’s IPO, Reuters reports, citing sources it says are familiar with the SWF’s intentions. The move would partly protect PIF’s stake of just under 1% in the company from dilution as the rocket company moves towards an IPO.

Background: Elon Musk’s SpaceX is reportedly targeting a June IPO after its confidential filing with the US Securities and Exchange Commission last week. SpaceX is aiming to raise a record USD 75 bn in its debut — surpassing Aramco’s record-breaking USD 29 bn offering back in 2019 and angling for a valuation of over USD 1.75 tn. Wealthy investors served by the underwriting banks are expected to form a large portion of the allocation, while as much as 30% could go to retail investors.

PIF’s new five-year strategy — to be formally announced in the upcoming weeks — is expected to concentrate capital into a smaller pool of portfolio companies and scale them into global champions across sectors such as logistics, mining, religious tourism, and AI.

The multi-bn USD investment also reinforces PIF’s commitment to its international portfolio despite the ongoing regional war, a message Governor Yasir Al Rumayyan reiterated at the FII event in Miami. The fund’s global dealmaking continues, with PIF’s Savvy Games also nearing the close of a USD 6 bn purchase of mobile game maker Moonton from TikTok maker ByteDance.

MEANWHILE- Gulf sovereign wealth is moving into Hollywood in a massive way, with three major funds poised to back Paramount’s takeover of Warner Bros. PIF, Abu Dhabi’s L’imad Holding, and the Qatar Investment Authority are committing a combined USD 24 bn to the deal, with PIF writing the biggest check at around USD 10 bn. The massive commitment fills the vacuum left when Netflix reached a dramatic end and walked away from its bid, putting GCC capital firmly at the heart of global media consolidation.

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Egypt is making another run at its privatization program by submitting EGX listing documentation for five state-owned firms, including El Nahda Industries, Egyptian Ferroalloys, El Nasr Glass, El Nasr Mining, and Alexandria Refractories. The filings are part of a broader push to generate USD 3-4 bn in divestment proceeds by year-end.

State gas player Egas has inked a USD 500 mnfinal investment decision with Arcius Energy to develop the Harmattan gas field in the Mediterranean. Arcius is a joint venture between BP and Adnoc’s investment arm, XRG. Arcius is slated to come online in 2028.

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