Investing.com -- Major initial public offerings by large private technology companies will likely increase demand for stock sales in Europe's tech sector, according to a senior BNP Paribas investment banker.

Ygal el Harrar, global head of equity capital markets for the technology industry at BNP Paribas, said in an interview in Paris that market activity creates momentum. "Liquidity attracts liquidity," he said. "If you're having big tech companies listing in the US, it's going to make babies and it's going to feed the economy."

El Harrar received his appointment earlier this year as the French bank works to grow its equity capital markets presence in the technology sector. He previously led venture capital coverage.

Space Exploration Technologies Corp., owned by Elon Musk, along with ChatGPT maker OpenAI and competitor Anthropic PBC have all filed for US public listings. The combined pipeline represents approximately $3.6 trillion in potential offerings.

The scale and market interest in these companies is creating effects beyond US borders, El Harrar noted. American investors have begun exploring European opportunities more frequently in recent months, he said.

El Harrar suggested that expanding research coverage for emerging technology sectors could help increase the number of tech companies pursuing public listings. "For critical but new sectors like quantum for instance, there is a need for more public awareness and make sure its evolution will be followed and understood," he said.