Will SpaceX Become a 'Black Hole' for the Stock Market? IPO Push Set for June

[Financial News]  
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SpaceX, the space company led by Tesla CEO Elon Musk, is expected to begin its IPO process as early as this week.
The listing, which would be the largest ever, is expected to create a huge stir and lift related rocket stocks as well.
In particular, SpaceX is presenting rocket launches and space AI data centers as future growth drivers, suggesting a significant ripple effect on related stocks.
At the same time, some are warning that the company could become a market 'black hole,' drawing in all available stock market funds and causing serious damage as investor attention concentrates on the space company and bubble concerns emerge from day one.
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According to CNBC and Reuters, SpaceX's listing is expected to get underway this week.
The prospectus is expected to be released around the 20th, local time, followed by a roadshow for investors on the 4th of next month and a final offer price set on the 11th.
The first trade on Nasdaq is expected to take place on the 12th, the day after the offer price is finalized.
SpaceX's stock ticker has been set as 'SPCX.'
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SpaceX's listing is expected to reach an all-time high in scale. In particular, after absorbing xAI, the AI company that became the parent of Musk's social network X in February, SpaceX's valuation has soared.
SpaceX aims to raise about $75 billion through this IPO. Its total valuation is expected to reach between $1.75 trillion and $2 trillion.
That would easily surpass the previous record of $25.6 billion set by Saudi Arabian Oil Company (Saudi Aramco) in 2019.
A strong market debut is already being anticipated.
According to The Information, BlackRock, the world's largest asset manager, is in late-stage talks to invest between $5 billion and $10 billion in the IPO.
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Jim Cramer, the former hedge fund manager and well-known CNBC stock commentator, warned that SpaceX's IPO could have significant side effects on the market.
On the 15th, on his program 'Mad Money,' Cramer said that if the amount of stock released in the offering is tiny compared with explosive market demand, a sharp surge in the share price beyond expectations on the first day of trading may be unavoidable.
He warned, "If the float is limited, SpaceX's valuation could quickly soar to $5 trillion right after listing," adding, "The frenzy of the dot-com bubble era could return."
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Cramer said he feared that if investors rush in frantically, the market could face a massive sell-off as people sell existing holdings to buy SpaceX shares.
In other words, SpaceX could become a black hole that sucks in stock market funds.
In addition to SpaceX, AI companies OpenAI and Anthropic are also preparing for listings in New York this year. Their valuations are already hovering around $1 trillion.
Investors who remember the stock surge after Tesla's listing may dump large portions of their holdings to buy these new names, which are expected to become fresh growth drivers for the market. That raises the possibility of sharp volatility in the NYSE.
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With speculative overheating already intensifying in the rocket and space sectors, SpaceX's listing could drive the market into severe distortion.
Rocket Lab USA, Inc.'s stock has quadrupled over the past year, helped by the effect of the U.S. administration's 'Golden Dome' space defense project and expectations surrounding SpaceX's listing.
SpaceX's successful market debut is likely to fuel bubbles not only in Rocket Lab USA, Inc. and Intuitive Machines, which already have earnings to support them, but also in later entrants such as Firefly Aerospace, which still lack solid results.
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dympna@fnnews.com Song Kyung-jae Reporter