The initial public offering of Elon Musk’s SpaceX has reportedly seen an oversubscription rate running at almost ​four times the planned offering size, with some analysts suggesting it could be squeezing liquidity from the market.

SpaceX’s IPO (SPCX) has attracted over $250 billion in investor demand, far exceeding the $75 billion it is seeking to raise in what would be the largest public offering ever, with the firm valued at $1.8 trillion, Reuters reported.

Bankers and investors say it is the latest sign that demand is strong, ​as long-only funds have put in “sizable orders,” according to the sources.

Pricing is expected on Thursday, though demand figures can still shift before then, as some large institutional investors tend…