SpaceX reportedly prepares to file IPO prospectus as soon as this week
Retail investors drove VCX higher seeking proxy exposure to SpaceX, Anthropic and OpenAI ahead of potential mega IPOs.
Reports indicate that SpaceX is preparing to file its IPO prospectus as early as this week or next, paving the way for a historic public offering in June. The highly anticipated listing is expected to be the largest IPO in U.S. history, potentially raising over $75 billion, according to advisers involved in the process. This figure surpasses earlier estimates of $50 billion. SpaceX, which was last valued at approximately $1.25 trillion following its merger with xAI, could see its valuation leap to $1.75 trillion once public, placing it among the largest companies in the S&P 500.
Demand for Proxy Investment Vehicles Surges
The buzz surrounding SpaceX’s potential IPO has driven significant demand for proxy investment vehicles. Shares of Fundrise Innovation Fund (VCX), one of the few publicly traded options offering exposure to private-market leaders like SpaceX, have soared. VCX stock rose 64% on Tuesday, with cumulative gains exceeding 2,500% since its listing last Thursday. The closed-end fund’s portfolio includes holdings in SpaceX, Anthropic, and OpenAI, among others, positioning it as a key player for retail investors seeking to capitalize on the upcoming IPO wave.
Another fund, Destiny Tech100 (DXYZ), which focuses on private AI leader Anthropic, also saw an increase in activity, with its stock climbing more than 7% in after-hours trading.
The AI IPO Pipeline: Anthropic and OpenAI Prepare for Public Debuts
While SpaceX is leading the charge toward the public markets, major AI firms are not far behind. Anthropic, known for its advancements in AI technology, has hired IPO counsel and initiated discussions with investment banks, signaling early preparations for a public debut. Investors speculate that Anthropic’s IPO could precede that of rival OpenAI, which is also reportedly laying the groundwork for a public offering. OpenAI has held informal talks with Wall Street banks and recently expanded a financing round to over $120 billion, which may serve as its final private funding round.
Together, SpaceX, Anthropic, and OpenAI represent a combined private-market valuation exceeding $2 trillion. Their expected IPOs could dominate the next wave of large-cap technology listings, potentially adding more than $3 trillion to the U.S. equity market capitalization, as reported by Bloomberg.
VCX Portfolio's Role in Anticipated Growth
The VCX portfolio has attracted attention for its strategic holdings in companies poised for future IPOs. Approximately 44% of the fund is allocated to AI-related investments, with Anthropic representing its largest position at 20.7%, followed by Databricks, OpenAI, and SpaceX. Retail investors have driven the fund’s meteoric rise, with shares trading at more than 16 times its latest net asset value (NAV) of $18.97. Since its launch, VCX has delivered significant returns, with a 63% gain over the past 12 months and cumulative returns of 84% since its inception in July 2022.
Capital Concentration Raises Concerns
Despite the excitement, some investors have voiced concerns that the sheer scale of these blockbuster IPOs could drain liquidity from smaller market players. Vineet Jain, founder of Egnyte, commented on the potential impact, stating that these companies could "vacuum a lot of liquidity out of the market", according to a report from Barron’s. Large passive funds and growth-focused portfolios are expected to reposition ahead of these listings, further amplifying the concentration of capital around SpaceX, OpenAI, and Anthropic.
Retail Sentiment Remains Strong
The retail investor community has displayed overwhelming enthusiasm for VCX, with Stocktwits reporting a 6,000% surge in message volumes over the past week. While some users praised the fund’s rapid gains, others expressed skepticism about its valuation. One user observed, "The book value doesn’t add up on this. I’m wondering who else is analyzing that when you add up the value of everything they own this is inflated by about 5X but apparently retail doesn’t care." Another predicted that VCX would "issue new shares after lock-up period ends for this to drop only 700 mil NaV."
As anticipation builds for SpaceX’s IPO and the broader wave of high-profile technology listings, retail and institutional investors alike are positioning themselves for what could be a transformational year in the public markets.
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