By the time most retail investors get access to blockbuster IPOs, the biggest gains may already be gone. That’s the argument Tessera PE CEO Chan Ahn is making as debates intensify around SpaceX‘s public offering.
SpaceX’s rise from roughly $350 billion to a reported $1.75 trillion-$2 trillion IPO target highlights a growing imbalance in modern markets, Ahn told Benzinga.
“SpaceX compounded from roughly $350 billion to a reported $1.75–2 trillion IPO target — that’s 5x appreciation that happened entirely while retail was locked out,” the former Goldman Sachs and JPMorgan executive said. He called it “the biggest wealth-creation event of a generation.”
IPO Access Versus IPO Illusion
Ahn argues the issue goes beyond allocation size. Even when companies reserve shares for retail buyers, oversubscribed deals …
This post was originally published here
