Gina Rinehart emerges as billion-dollar investor in Elon Musk’s SpaceX float

Gina Rinehart has emerged as a billion-dollar investor in Elon Musk’s huge share market float of space, satellite and AI group SpaceX.

Confirming a “significant” investment, the WA billionaire’s Hancock Prospecting mining and agribusiness flagship on Monday lauded SpaceX as an exceptionally led company operating in crucial sectors and flagged potential collaboration between the groups.

While Hancock did not detail its investment in the rocket and spacecraft maker, US media put it at more than $US1 billion ($1.4b). That suggests a holding of more than 7 million SpaceX shares.

“This is a significant investment for Hancock, and we are pleased to have received an allocation in what has been an extremely popular and oversubscribed IPO,” Mrs Rinehart said.

“SpaceX’s record speaks for itself. It was the first private company to launch a liquid-fuel rocket to orbit in 2008, the first to dock a private spacecraft with the International Space Station in 2012, and other firsts, and, very critically, through Starlink, the first to begin deploying large-scale LEO broadband satellite constellations in 2019.”

SpaceX last week raised a record $US75b in the world’s biggest-ever initial public offer, valuing the company at more than $US1.8 trillion and vaulting Mr Musk’s worth to over $US1 trillion.

As of Friday’s close on the NASDAQ exchange, its value had increased to $US2.2 trillion after its shares closed at $US160.95 - 19 per cent above their IPO issue price.

Mrs Rinehart said SpaceX was “a rare business” led by “a truly exceptional person, technically exceptional and operating in sectors that are crucial, and with long-term potential”.

“SpaceX stands apart as the only company globally building integrated hardware and software across its core segments of space, connectivity and AI,” she said.

“It has changed what many thought was possible - from reusable rockets to advanced connectivity - and its work will continue to shape industries, economies and opportunities for decades to come.”

The SpaceX investment adds to an already wide-ranging and large Hancock portfolio that includes major interests in lithium, rare earths, gas and agriculture.

Hancock chief executive Garry Korte said the IPO allocation amounted to “a strong endorsement” of Mrs Rinehart by Mr Musk.

“SpaceX is targeting development of a vertically integrated infrastructure business, has cutting edge engineering capability, and is looking to drive down costs through manufacturing technique, scale and development speed,” Mr Korte said.

“SpaceX is years ahead in launch capability, and critically, satellite communications, and in a short space of time has built a leading AI platform, Grok, which we use.

“They continue to innovate with the design and manufacture of their own chips as well as putting AI compute into orbit.

“In the future, we also see the possibility of mutually beneficial arrangements between SpaceX and Hancock Prospecting’s significant critical minerals investments, as demand grows for the materials and infrastructure needed to support advanced technology.”