KUALA LUMPUR (June 12): Reach Ten Holdings Bhd (KL:REACHTEN) has gained an indirect exposure to billionaire Elon Musk’s Space Exploration Technologies Corp (SpaceX) through a US$1 million (RM4.2 million) investment via Alta Fund Management.
In an exchange filing on Friday, Reach Ten said the investment was made via its wholly-owned unit Reach Ten Communication Sdn Bhd on Sept 25, 2025, and is channelled through AAF4 Class A-4 Participating Shares, a fund managed by Alta that provides indirect economic exposure to a portfolio of underlying assets including SpaceX.
Reach Ten Communication’s subscription translates to an indirect exposure equivalent to about 4,167 SpaceX shares at entry, which is expected to expand to roughly 20,835 shares following SpaceX’s five-for-one stock split.
The investment was made at an estimated entry price of US$240 per share, or US$48 per share on a post-split basis. Based on SpaceX’s initial public offering (IPO) price of US$135 per share, the indicative value of the underlying exposure is estimated to be US$2.81 million (RM11.4 million).
Reach Ten cautioned that all valuation figures are indicative and subject to confirmation by the fund manager, including carried interest, fees, allocation adjustments and IPO settlement mechanics.
Reach Ten Communication’s subscription is subject to a carried interest of 10% payable to Alta, as well as applicable management fees and allocation adjustments.
Reach Ten said the investment is funded entirely from internally generated funds.
SpaceX officially went live on the Nasdaq on Friday, and is among the most closely watched private companies globally, spanning rocket manufacturing and launch services, satellite internet through its Starlink constellation, and broader space exploration activities.
“The investment presents a rare and compelling opportunity for the group to gain financial and strategic exposure to the global space economy and frontier technology sectors,” said Reach Ten in its filing.
It added: “By utilising the Alta Fund platform, the group gains structured access to high-growth, late-stage private global monopolies like SpaceX, which are traditionally inaccessible to regional institutional investors. This allocation serves to maximise long-term shareholder value and diversify the group's traditional revenue portfolio.”
The group said the transaction involves no issuance of new shares and is not expected to have any material immediate impact on the group’s net assets per share or earnings per share for the financial year ending Dec 31, 2026.
The highest percentage ratio applicable to the transaction, computed against the group’s net assets, stands at 5.22% — below the threshold that would require shareholder approval under Bursa Malaysia’s main market listing requirements.
Reach Ten was listed on the Main Market of Bursa Malaysia on May 2, 2025 at an IPO price of 52 sen.
The group owns and operates fibre-optic communication network infrastructure in Kuching and Samarahan, spanning about 217km of infrastructure and 649km of cable link communication networks.
Shares of Reach Ten closed 6.5 sen or 16.1% higher at 47 sen on Friday, giving the group a market capitalisation of RM470 million.