Danish pension provider PFA has welcomed major technology initial public offerings (IPOs), including SpaceX's expected market debut, arguing that public listings give pension savers access to companies' long-term value creation.

In an online update, PFA chief strategist, Tine Choi Danielsen, highlighted the aerospace company's planned IPO, expected on 12 June, which could become one of the largest listings in history.

The comments contrast with the position taken by Danish pension fund AkademikerPension, which last week placed SpaceX on its exclusion list ahead of the company's expected Nasdaq debut.

AkademikerPension said the decision was driven by concerns over both valuation and governance, arguing that market expectations imply a valuation of at least USD 1.8trn, significantly above its own assessment of the company's long-term worth.

The fund also raised concerns about governance arrangements at SpaceX, noting that its chief executive, Elon Musk, is expected to retain more than 80 per cent of voting rights following the listing.

Although Danielson stated that “each company must be assessed as an investment case in its own right”, she argued that it is “generally positive” that through IPOs, “we can share in the long-term value creation that takes place within these companies”.

She argued that Danish pension savers had already benefited significantly from investments in US equities, highlighting the strong performance of the S&P 500 over the past decade.

“Looking at the S&P 500 index, it has risen by over 240 per cent over the last 10 years, and Danes have benefited greatly from this massive value creation, particularly through their pension savings,” she said.

According to Danielsen, major technology companies are increasingly turning to public markets to raise capital as investment requirements for artificial intelligence, data centres and global logistics continue to grow.

She said these investments have become increasingly capital intensive, even for highly profitable firms, as companies seek to fund future growth and productivity gains.

However, she cautioned that each company should be assessed on its own merits and that strong historical returns do not guarantee future performance.

“As we know, past performance is no guarantee of future results, and every company is different,” she said.

The comments came as global equity markets experienced heightened volatility following stronger-than-expected US employment data and persistent inflation concerns, which have fuelled expectations that interest rates could remain higher for longer.

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