Norway's oil fund likely to buy SpaceX shares upon IPO

Norway's massive sovereign wealth fund is poised to invest in Elon Musk's SpaceX when the rocket company launches its initial public offering, according to Nicolai Tangen, the chief executive of the fund.

Tangen, speaking on NRK's Helgemorgen program, stated that while the fund will operate within the guidelines set by the Ministry of Finance, it anticipates purchasing shares in SpaceX. "To be completely honest, we can both profit and lose from that investment," Tangen remarked, acknowledging the inherent risks and potential rewards.

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To be completely honest, we can both profit and lose from that investment.

The fund has historically followed global indices closely, a strategy that has proven profitable over time. However, Tangen indicated that the upcoming SpaceX IPO presents a unique situation. "Then you come into a situation like this, where a rocket company is going public. Then we have to deal with it, and everything else likewise, we have to buy into that company a little. We will probably do that," he said.

SpaceX is reportedly planning to offer 555.6 million shares on the open market, aiming to raise approximately $75 billion. If successful, this would significantly surpass the current record for IPOs, established by oil giant Saudi Aramco in 2019 when it raised $25.6 billion. The potential investment underscores the fund's strategy of adapting to new market opportunities while adhering to its investment principles.

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Then you come into a situation like this, where a rocket company is going public. Then we have to deal with it, and everything else likewise, we have to buy into that company a little. We will probably do that.