Sky-high IPO pricing isn’t great for real people
Elon Musk's SpaceX is preparing for a public offering with a valuation of at least $1.25 trillion, alongside significant IPOs from OpenAI and Anthropic. While these companies may have promising futures, experts warn that their high valuations could pose risks for ordinary investors. The inclusion of these companies in major stock indexes may provide exposure, but the initial public share availability will be limited.
- ▪SpaceX's IPO could raise up to $75 billion and achieve a valuation exceeding $1 trillion.
- ▪OpenAI and Anthropic are also expected to launch IPOs with valuations around $900 billion each.
- ▪Experts caution that the high valuations may not yield profits for ordinary investors in the near term.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountElon Musk doesn’t think small. Already the richest person in the world, he may soon become the first trillionaire. Musk is preparing to go public with SpaceX, his rocket and satellite maker, at a total valuation for the company of at least US$1.25-trillion, and perhaps substantially more.The founders of two artificial intelligence companies, OpenAI and Anthropic, are also expected to come out shortly with colossal IPOs. Preliminary accounts give each of those companies a targeted total valuation of US$900-billion, give or take a few hundred million dollars.These are stupendous numbers.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
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