Ed Yardeni, president of Yardeni Research, dismissed concerns that upcoming initial public offerings from SpaceX, Anthropic, and OpenAI will drain liquidity from the stock market. SpaceX is expected to go public on June 12th, while Anthropic and OpenAI are also preparing their IPOs. Yardeni stated the three companies should raise $200 billion without difficulty, citing IPO market capacity that financed $232 billion over the past 12 months through April. The strategist argued that fears of the so-called AI-3 sucking oxygen out of the stock market are unfounded based on IPO history, noting that the IPO market raised more than $450 billion in 2021.
Yardeni Cites IPO Market Capacity of $232 Billion Over Past 12 Months
In a blog post, Yardeni stated that the AI-3 should have no trouble raising $200 billion in the IPO market, which has financed $232 billion in new equity issuance over the past 12 months through April. During 2021, more than $450 billion was raised with equity IPOs, according to Yardeni. The strategist noted that the amount the AI-3 are expected to raise represents a fraction of the $75.6 trillion Wilshire 5000 and $60 trillion S&P 500 market capitalizations.
SpaceX Limits Public Share Float to 4.3% of Total Shares
Yardeni stated that SpaceX is only floating roughly 4.3% of its shares to the public. The strategist added that Anthropic and OpenAI are also likely to provide relatively limited free float, referring to shares available for public trading excluding closely held shares, insider holdings, and government stakes. Yardeni questioned whether the Wilshire 5000 and S&P 500 market capitalizations will increase by $4 trillion to $5 trillion when the AI-3 go public, stating this is unlikely based on free float considerations.
FAQ
What did Ed Yardeni say about SpaceX, Anthropic, and OpenAI IPOs?
Ed Yardeni, president of Yardeni Research, dismissed concerns that the three companies' IPOs will drain stock market liquidity. He stated the AI-3 should have no trouble raising $200 billion, citing that the IPO market financed $232 billion over the past 12 months through April.
When is SpaceX expected to go public?
SpaceX is expected to go public on June 12th, according to the article. Anthropic and OpenAI are also preparing their initial public offerings.
How much of SpaceX will be available for public trading?
SpaceX is only floating roughly 4.3% of its shares to the public, according to Yardeni. He noted that Anthropic and OpenAI are also likely to provide relatively limited free float to public investors.
