"Short answer: Very. The median market cap of an S&P 500 company is close to $40 billion; this is a completely different stratosphere, said Paul Abrahimzadeh, a partner at 1789 Capital and a former co-head of equity capital markets for North America at Citigroup Inc. A company like SpaceX will clearly cater to a wide swath of institutional investors as well as retail and is a must-own name."
"IPOs have been more or less stuck in a rut since a record $492 billion year in 2021, and companies like SpaceX, Stripe and ByteDance that once would have been candidates for listings have attracted valuations in private funding rounds that leave most public companies in the dust, all without being exposed to the scrutiny that quarterly financial reporting brings."
About $2.9 trillion of private companies remain outside public markets, creating potential supply for large IPOs. SpaceX, Stripe and ByteDance exemplify firms with private valuations that dwarf typical public-company market caps. Those valuations have been achieved without quarterly reporting scrutiny and despite limited profits or controversial leadership in some cases. A high-profile SpaceX listing seeking valuations near $800 billion to $1.5 trillion could validate returning to the public market for other private giants. Institutional and retail investors are expected to clamor for access to such names, reviving IPO activity and deal fees for bankers.
Read at www.mercurynews.com
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