Susannah Batley

You know, there's lock-up periods that will come away over that time as well.

So we do know that supply is going to be increasing in terms of potential sellers in that stock that are owners before the IPO that choose to

get some liquidity post IPO and sort of interesting to see what the demand side looks like in particular as that comes into the index.

So I think when it comes back to that purpose of IPO, are they existing shareholders that are selling shares or is the company raising new money?

Either way, ideally looking to maximise the valuation or at least have a good valuation, both for owners that are selling some of their shares, wanting to maximise proceeds for them, but also if they're raising new money, then often they've got a target amount that they're looking to raise.

And so the higher the share price, the less dilution those owners need to have.

And so either way, looking for a market dynamic that can support generally healthy valuation.

Having said that, for a company that is raising money to grow, often they are looking at, actually, this is only the start of that, and they want to be accessing the capital markets in the future.

And so if they...

raising money at sort of a too high valuation that the company can't really support over the medium term and shareholders buy in at the IPO and then their price just trends down, that can make it really hard for the company to access capital in the future.

So sometimes for a company that might be raising money for growth, there is a bit of a trade-off in terms of maximising the

the proceeds you get at the time or the valuation versus actually optimising for the longer term and making sure that you can access the capital markets in the future as you continue to grow and pursue different objectives.

take it back a couple of years, I saw a stat that nine out of 10 US companies with revenue over 100 million US per annum were private, which I found pretty shocking because definitely historically, a listing has been something that you achieve it when you reach a certain scale.

And it has been pretty phenomenal to see just the sheer size that private companies have grown to and been able to continue to access capital.

But

I think there are limits.

If you look at the SpaceX prospectus, I think they're not looking to get to cash flow break even until 2030.

A lot of capital that they're going to be raising between now and then.

And, you know, public markets do provide generally pretty ready access to capital potentially.

Well, I think it's quite interesting looking at the numbers and the prospectus.