Four-times oversubscribed demand may not shield SpaceX from a rough debut if too many buyers enter the IPO looking to flip shares quickly, Jim Cramer said Wednesday.
Short-term selling right after trading starts could inject volatility and push the stock lower, making buyer quality more important than the headline demand figure.
Cramer said healthier IPOs are anchored by retail holders who keep buying and institutions that commit not to sell, while tight allocations can curb speculative influence.
Even with demand already exceeding supply by roughly 4-to-1, he said he would be more comfortable if the offering were 10 times oversubscribed.