00:00It's Benzinga bringing Wall Street to Main Street.
00:02Large mutual funds and passive index funds are building cash reserves
00:06and preparing to sell some large cap holdings ahead of blockbuster
00:10IPOs from SpaceX and OpenAI, according to Reuters.
00:14Goldman Sachs, managing director John Flood, said in a May 22nd note that passive funds
00:20may be forced to sell existing positions to make room for newly public companies.
00:26SpaceX is targeting a valuation of around $1.75 trillion,
00:30which would make it the seventh most valuable U.S. company.
00:34OpenAI could seek a valuation of $1 trillion or more at listing,
00:38and Anthropic is in talks to close a funding round at nearly $1 trillion.
00:44Both the NASDAQ 100 and S&P 500 are rolling out new rules
00:48to speed up the addition of newly listed mega cap companies.
00:52Deutsche Bank analysts said household cash balances
00:55and strong investor willingness support the outlook for new listings.
00:59For all things money, visit Benzinga.com.
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