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IPO Windfall for Wall Street: Bet on Bank Stocks & ETFs
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Key Takeaways
SpaceX's blockbuster IPO may kick off a new wave of AI-driven mega listings.
Goldman and Morgan Stanley stand to benefit from SpaceX and upcoming AI IPOs.
Bank ETFs like KBWB and IAI offer a way to play the IPO revival theme.
The coming months are likely to feature a series of big-ticket IPOs for Wall Street. SpaceX (SPCX - Free Report) shares already surged 19% on their Nasdaq debut on Friday, marking the largest IPO in history. SpaceX's record-breaking $75 billion IPO generated an estimated $500 million in underwriting fees.
Lead banks Goldman Sachs and Morgan Stanley are expected to receive about $100 million each, while Bank of America, Citigroup, and JPMorgan Chase could collect roughly $75 million apiece, as quoted on Yahoo Finance.
And that's not all. AI behemoths like Anthropic, OpenAI and Perplexity are also planning IPOs in the coming years. The success of the SpaceX debut has fueled expectations for future mega-listings from AI firms.
'SpaceX Multiplier Effect'
Beyond underwriting fees, banks see long-term opportunities from the IPO. SpaceX could pursue future share offerings, while newly wealthy employees may become lucrative wealth-management clients.
Sign of IPO Revival
The blockbuster debut is being viewed as a catalyst for a broader IPO resurgence. Analysts believe the successful listing strengthens confidence in an AI-driven capital markets boom and could pave the way for other highly anticipated offerings.
OpenAI and Anthropic Up Next?
Goldman Sachs and Morgan Stanley are also reportedly leading preparations for potential IPOs from OpenAI and Anthropic. The success of SpaceX suggests investor appetite remains strong for large-scale AI and technology listings.
Not only that, AI firm Perplexity is planning to go public in 2028 regardless of how the market receives the listings of Anthropic and OpenAI, CNBC reported recently, citing an interview with CEO Aravind Srinivas, as quoted on Reuters.
More About Prestige Than Fees
Although the dollar amount is enormous, the fee pool represents just 0.7% of the funds raised in the case of SpaceX, a relatively low rate for a deal of this size. Analysts noted that banks were willing to accept slimmer fees for the prestige of working on one of the most anticipated IPOs in market history. The anticipated big-ticket AI IPOs are likely to follow a similar path.
Anthropic has confidentially filed its S-1 with the SEC for a targeted October 2026 listing on the Nasdaq. The AI developer tapped Goldman Sachs and Morgan Stanley to lead the underwriting syndicate for the expected multi-billion-dollar blockbuster, as quoted on Bloomberg.
Bottom Line
For Wall Street, the SpaceX IPO delivered far more than underwriting revenue. The deal strengthened client relationships, and may mark the beginning of a new wave of mega IPOs centered on AI and next-generation technology.
In a nutshell, due to heavy presence in tech IPOs, investors can bet on Goldman and Morgan Stanley-heavy ETFs like iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI - Free Report) , and State Invesco KBW Bank ETF (KBWB - Free Report) .
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IPO Windfall for Wall Street: Bet on Bank Stocks & ETFs
Key Takeaways
The coming months are likely to feature a series of big-ticket IPOs for Wall Street. SpaceX (SPCX - Free Report) shares already surged 19% on their Nasdaq debut on Friday, marking the largest IPO in history. SpaceX's record-breaking $75 billion IPO generated an estimated $500 million in underwriting fees.
Lead banks Goldman Sachs and Morgan Stanley are expected to receive about $100 million each, while Bank of America, Citigroup, and JPMorgan Chase could collect roughly $75 million apiece, as quoted on Yahoo Finance.
And that's not all. AI behemoths like Anthropic, OpenAI and Perplexity are also planning IPOs in the coming years. The success of the SpaceX debut has fueled expectations for future mega-listings from AI firms.
'SpaceX Multiplier Effect'
Beyond underwriting fees, banks see long-term opportunities from the IPO. SpaceX could pursue future share offerings, while newly wealthy employees may become lucrative wealth-management clients.
Sign of IPO Revival
The blockbuster debut is being viewed as a catalyst for a broader IPO resurgence. Analysts believe the successful listing strengthens confidence in an AI-driven capital markets boom and could pave the way for other highly anticipated offerings.
OpenAI and Anthropic Up Next?
Goldman Sachs and Morgan Stanley are also reportedly leading preparations for potential IPOs from OpenAI and Anthropic. The success of SpaceX suggests investor appetite remains strong for large-scale AI and technology listings.
Not only that, AI firm Perplexity is planning to go public in 2028 regardless of how the market receives the listings of Anthropic and OpenAI, CNBC reported recently, citing an interview with CEO Aravind Srinivas, as quoted on Reuters.
More About Prestige Than Fees
Although the dollar amount is enormous, the fee pool represents just 0.7% of the funds raised in the case of SpaceX, a relatively low rate for a deal of this size. Analysts noted that banks were willing to accept slimmer fees for the prestige of working on one of the most anticipated IPOs in market history. The anticipated big-ticket AI IPOs are likely to follow a similar path.
Anthropic has confidentially filed its S-1 with the SEC for a targeted October 2026 listing on the Nasdaq. The AI developer tapped Goldman Sachs and Morgan Stanley to lead the underwriting syndicate for the expected multi-billion-dollar blockbuster, as quoted on Bloomberg.
Bottom Line
For Wall Street, the SpaceX IPO delivered far more than underwriting revenue. The deal strengthened client relationships, and may mark the beginning of a new wave of mega IPOs centered on AI and next-generation technology.
In a nutshell, due to heavy presence in tech IPOs, investors can bet on Goldman and Morgan Stanley-heavy ETFs like iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI - Free Report) , and State Invesco KBW Bank ETF (KBWB - Free Report) .