SpaceX’s ‘otherworldly’ debut could squeeze the oxygen from Europe’s IPO market, analysts say
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- SpaceX plans a June 12 IPO valued at $75 billion, giving it a $1.75 trillion market cap—potentially the largest stock debut in history.
- Cerebras Systems’ recent IPO lifted its market cap to $95 billion, still far below SpaceX’s projected size.
- Samuel Kerr of Mergermarket noted typical IPOs aim for ~5× coverage, so SpaceX would need demand “well in excess” of $75 billion, likely absorbing most investor capital.
- Europe’s IPO market is already weak; the SpaceX debut could “suck all the oxygen out of the room,” limiting demand for other listings.
- Salman Ahmed of Fidelity International warned that a wave of mega‑IPOs—including SpaceX, OpenAI and Anthropic—could create a “supply event” that drains liquidity and forces portfolio rebalancing.
Why it matters: Investors seeking new equity allocations will likely favor SpaceX’s $75 billion offering, leaving European issuers with reduced capital and likely delays fundraising for high‑growth firms in the next quarter.
