Just how big IS the impending SpaceX offering? Try more than 3X the size of its next-closest competitor! Now, let’s talk about what that means for markets.
My MoneyShow Chart of the Day comes courtesy of the Wall Street Journal. It shows the gross proceeds of every Initial Public Offering (IPO) from 2019 through present day. SpaceX is targeting a raise of $80 BILLION – or more. The next-closest deal is the 2019 offering from the energy giant Saudi Aramco, which raised “only” $26 billion.
Gross Proceeds of Global IPOs 2019-Present
Source: Wall Street Journal
What about valuation? Aramco’s offering valued that company at around $1.7 trillion. It’s not clear if Elon Musk’s SpaceX will top that…but it’s possible.
All told, the firm will likely end up being the 10th or 11th largest publicly traded company after the IPO. Nvidia Corp. (NVDA) is at the top of the list, with a current market capitalization of $5.3 trillion.
The big question for investors is simple: Can markets handle an influx of so much stock? Not just from this mega-deal, but other looming IPOs from AI names like OpenAI and Anthropic? The former is reportedly targeting a September transaction now.
Ultimately, markets are priced off supply and demand – just like anything else. If too much stock floods Wall Street...and there aren’t enough buyers to absorb it...markets will fall.
Investment bankers are hoping the appetite for SpaceX stock is strong. Bulls better hope they’re right!
