Key facts
- SpaceX plans to go public on June 12.
- The company targets a $1.75 trillion valuation.
- SpaceX aims to raise $75 billion through its IPO.
- OpenAI and Anthropic are also expected to file for IPOs.
- Concerns exist about liquidity drain from mega-listings.
- Historical IPOs suggest systemic liquidity crisis is unlikely.
SpaceX is preparing for a significant initial public offering (IPO) on June 12, targeting a valuation of $1.75 trillion and aiming to raise $75 billion. This event is anticipated to be the first of several mega IPOs in the coming months, with AI companies OpenAI and Anthropic also expected to pursue listings. Investors fear these mega-listings will drain liquidity from equities and crypto, but historical data suggests this risk may be overstated. The combined IPOs are expected to raise approximately $200 billion, representing about 5% of their market caps and 0.3% of Wall Street's total capitalization. Small initial floats and lock-up restrictions make a systemic liquidity crisis unlikely. A more pertinent warning comes from history, such as the 1998 Global Crossing IPO, which reached a $55 billion valuation on a $400 million raise but later filed for bankruptcy. The article suggests that the upcoming FOMC meeting on June 16-17, led by Chair Kevin Warsh, presents a larger risk to Wall Street's direction than IPO flows. Warsh is noted as the first Fed chair since Paul Volcker to confront a rising interest rate trend, potentially creating a conflict between monetary and fiscal policy.