SpaceX’s ‘otherworldly’ debut could squeeze the oxygen from Europe’s IPO market, analysts say

SpaceX's imminent initial public offering is set to be the biggest stock debut in history — but the sheer scale of the launch could squeeze investor demand for other new listings, market watchers suggest. Samuel Kerr, global head of equity capital markets at Mergermarket, said SpaceX's long-awaited listing, expected June 12, comes as Europe's IPO market struggles to build momentum, in sharp contrast to the "completely booming" U.S. market. With a potential $75 billion IPO and a market valuation of $1.75 trillion, SpaceX's debut offering is "otherworldly," Kerr said. Such a listing would "dwarf" other recent debuts, including AI chipmaker Cerebras Systems, whose blockbuster IPO last week pushed its market cap to about $95 billion. "There's a possibility it could be a negative for the whole global IPO market," Kerr told CNBC's "Europe Early Edition" on Tuesday. He noted typical IPOs aim to be around five-times covered ahead of pricing, meaning demand for the SpaceX offering would likely need to be "well in excess" of $75 billion. It has the potential to "really suck all the oxygen out the room for anybody else," Kerr explained. "Everybody's eyes are going to be on SpaceX." Given the scale of capital the deal is expected to absorb from the global equity capital markets investor base — with investors potentially allocating significant orders to the listing — "almost nothing's going to want to be in the market at the same time," he added. …