Could these giant US IPOs change how ASX investors think about growth?
For years, many Australian investors have been spoilt for choice when it comes to banks, miners, healthcare, and infrastructure shares.
But let's be honest.
The S&P/ASX 200 Index (ASX: XJO) is not exactly overflowing with companies building reusable rockets, artificial intelligence models, or the next generation of space-based infrastructure.
That is why the looming public debuts of SpaceX, OpenAI, and Anthropic could be so fascinating for ASX investors.
These companies sit at the centre of some of the world's most powerful technology themes. SpaceX is pursuing reusable rocket technology, satellite internet, and long-term space ambitions. OpenAI and Anthropic are at the front of the artificial intelligence race.
For investors used to the familiar rhythms of the Australian market, that is a very different kind of growth story.
Yet, before getting swept up in the excitement, there is an important question to ask: Is buying into a blockbuster initial public offering really the best way to gain exposure?
Image source: Getty Images
The excitement is obvious
SpaceX is expected to be one of the most-watched IPOs in history if it proceeds.
The potential appeal is easy to understand. This is a business focused on self-landing rockets, Starlink satellite internet, and ambitious plans that stretch far beyond the typical corporate growth playbook.
The company's prospectus outlined three divisions: its rocket business, Starlink satellite internet, and artificial intelligence. Crucially, Starlink was the only profitable division at that stage, while the broader business was still loss-making.
For all the excitement, investors buying into a company like SpaceX would not simply be buying current profits. They would be buying a bold view of the future.
That can be powerful. But it can also be risky.
IPOs can be tricky for investors
Blockbuster IPOs often come with enormous hype. They can attract attention from retail investors, institutions, index funds, and thematic investors all at once.
However, IPO investing is not always straightforward.
One challenge is valuation. By the time a famous private company reaches public markets, much of the early value creation may already have occurred. Early investors, founders, employees, and private market backers may have acquired shares at far lower prices.
Once lock-up periods expire, some of those holders may look to sell shares and crystallise large gains. That selling pressure can weigh on a newly listed company's share price, even if the long-term story remains compelling.
That is one reason IPOs can sometimes fall after listing.
It does not necessarily mean the business is poor. It may simply mean the initial public market price left little room for error.
How ASX investors could gain exposure
Australian investors may have a few different paths to consider.
One option is direct participation if a US IPO includes an Australian retail offer. CommSec has been named as a lead Australian retail broker for the potential SpaceX IPO, with investors expected to require an international shares account.
Another option is to wait until the company lists and buy shares on the US market through an international trading account.
A third option is via listed vehicles that already hold exposure to these private companies.
One example is Pengana Private Equity Trust (ASX: PE1). The trust has exposure to SpaceX, OpenAI, and Anthropic through its private equity portfolio. Its SpaceX position has previously been described as one of the largest holdings in the portfolio.
That does not make PE1 a pure SpaceX investment. In fact, that may be the point. It offers exposure alongside a broader private equity portfolio, rather than relying solely on the success of a single newly listed company.
There is also thematic exposure. The recently launched Betashares Space Industry ETF (ASX: RCKT) is designed to provide exposure to the global space industry and may be able to include a major company like SpaceX quickly after listing, subject to index rules.
Foolish Takeaway
For ASX investors, the arrival of companies like SpaceX, OpenAI, and Anthropic on public markets could feel like a window into the next era of global innovation.
IPO prices can be demanding. Early shareholders may sell. Markets can overpay for the most popular stories. And even great companies can make poor investments if bought at the wrong price.
For long-term investors, the key may be to separate the dream from the deal.
Owning a company building rockets to Mars or intelligence systems for the future may sound extraordinary. But as always, valuation, business quality, time horizon, and portfolio risk still matter.
