Billionaire Elon Musk is planning the largest initial public offering (IPO) in history for SpaceX, which represents a significant positive development for existing investors and investment banks set to receive substantial commissions. However, one group may not share the enthusiasm: other companies planning to go public.
According to reports, SpaceX is expected to raise up to $50 billion in a U.S. listing, a move that could pave the way for IPOs by artificial intelligence firms Anthropic and OpenAI. These two companies, among the world's most highly valued private firms, have both advanced their listing preparations this year.
With Musk's rocket and satellite company targeting a June debut, this massive transaction, along with other potential large-scale IPOs, could dominate investor attention. This may compel relatively smaller companies planning to list to adjust their schedules and aim for off-peak timing.
Magnus Thoring, Global Head of Equity Capital Markets at private equity firm EQT AB, suggested that if smaller and mid-sized IPOs are scheduled too close to the mega-IPOs of tech giants, large asset management institutions might overlook these smaller offerings. "We certainly don't want to compete for attention at that time," Thoring stated in an interview. He mentioned that the group would move the IPO timetables for its portfolio companies forward by at least a month and a half to avoid clashing with super-sized IPOs like SpaceX's.
Bloomberg has learned that Stockholm-based EQT is preparing to list waste management company Reworld and school bus operator First Student in the U.S. as early as this year. The private equity group has also appointed advisors for cyber insurance firm CFC to explore potential sale or IPO options in London or New York.
The IPO market is gradually recovering from its post-pandemic slump. Bloomberg data shows that global IPO fundraising, excluding SPACs and other financial instruments, reached $170 billion in 2025, marking the highest level in three years. However, this figure remains below the average annual level of the decade preceding the pandemic and pales in comparison to the record $492 billion raised in 2021.
For mature companies that have moved beyond the venture capital stage and for private equity firms with portfolio companies nearing exit cycles, selecting the optimal listing timing has become more complex. Per Chilström, a capital markets partner at law firm Baker McKenzie in New York, noted, "There is industry discussion about whether these super-IPOs will impact the schedules of other listing candidates and if they need to list earlier." He pointed out that mega-IPOs carry the risk of diverting capital away from other new listings.
Long-only investors, such as mutual funds and pension funds, may feel compelled to fully participate in these super-IPOs. Thoring indicated that whether large asset managers secure allocations in new listings like SpaceX, and the subsequent performance of these stocks, could be critical to their annual returns.
Based on private market valuations, the sizes of SpaceX, Anthropic, and OpenAI already exceed 95% of the constituents in the U.S. S&P 500 index. If these companies perform strongly after listing, investors not holding their shares risk underperforming the market. Dan Klausner, U.S. Head of Public Equity Advisory at Houlihan Lokey, remarked, "When institutions and retail investors look at their portfolio holdings, they will ask, 'Why didn't you own that stock?'" He suggested portfolio managers might need to reduce existing holdings to free up capital for upcoming mega-cap listings.
"A fund can't always keep $1 billion in cash ready—so they might need to sell some profitable positions, which could have a ripple effect on listed companies," Klausner added. However, he also noted that if the opportunity is sufficiently attractive, raising additional capital for allocation is not a major hurdle.
Matt Warren, Co-Head of Americas Equity Capital Markets at Bank of America, stated, "For large deals—across all equity capital market products—funds can always find room for desirable targets."
For companies proactively adjusting their listing schedules to accommodate the tech giants, there is a potential upside. Stefan Gruffat, Global Head of Equity Capital Markets Syndicate at Deutsche Bank, suggested that if these super-IPOs perform well post-listing, they could attract more capital into the broader IPO market. "Many IPOs are typically mid-sized, and large mutual funds often don't get a chance to participate," he said. "But when large-cap IPOs perform well, the positive sentiment spreads broadly and benefits the entire market."
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