The latest
SpaceX has entered the stock market in one of the biggest public listings in years, a debut that could send ripples across both public and private markets, Axios reported.
The story is not only about Elon Musk’s company. SpaceX’s size and valuation make its IPO a market event, one that could affect investor appetite and shape expectations for other private tech giants waiting to go public.
Details
• Aaron Mulvihill, a strategist at JPMorgan Asset Management, told Axios that any large IPO has a “gravitational pull” that can affect public markets, private markets and related sectors.
• SpaceX made only about 5% of its shares available for trading. A typical IPO usually offers around 10% to 20% of a company’s shares, according to Mulvihill.
• Axios said the limited float was partly tied to SpaceX’s high valuation. Offering 20% of a company valued at about $2 trillion could have disrupted the market.
• The small float also means investors should be careful with the headline numbers around SpaceX’s valuation and Musk’s wealth. For now, they are based on trading in only a small slice of the company.
• Bill Smith, CEO of Renaissance Capital, wrote that IPO hype often peaks on the first day.
• JPMorgan data cited by Axios showed that the average IPO this decade was down 26% from its offering price one year later.
• Vanda data showed SpaceX recorded the largest day of net retail buying for an IPO in recent history, with $117.6 million in net purchases.
• SpaceX accounted for roughly 56% of all retail net buying on Friday, according to Vanda.
• Apex Fintech Solutions said traders bought $2.4 billion of SpaceX stock and sold $1.8 billion, making it one of the largest net-buying days the firm has processed.
• Demand did not come from retail investors alone. ETF analyst Eric Balchunas said 40 actively managed ETFs now hold SpaceX shares.
• Axios expects SpaceX to gradually increase its float as lockup periods expire and the company is added to major indexes.
• SpaceX is expected to enter the Nasdaq 100 in early July, which would force funds tracking the index, including QQQ, to buy the stock.
What to watch
A smooth SpaceX listing could open the door to a new wave of mega-IPOs. If companies such as Anthropic and OpenAI also make successful market debuts this year, the shape of the stock market could start to change, with more of the digital economy and AI sector moving into public trading.
