SpaceX IPO could be largest ever, index inclusion likely under existing rules

In short: SpaceX is preparing a massive IPO on Nasdaq, and it may be added to major stock indexes quickly, but there is no confirmed special rule change to speed that up.

What happened

SpaceX has filed to go public and is aiming to raise up to $75 billion by selling 555,555,555 shares at $135 each. That would value the company at about $1.75 to $1.77 trillion, based on the reported price and share count. SpaceX is expected to list on Nasdaq under the ticker symbol “SPCX.”

Some coverage has also connected the IPO to Elon Musk’s personal wealth. Reports say Musk would keep more than 80 percent of the company’s voting power, and the implied value of his stake could put him on track to become the world’s first trillionaire.

A separate part of the discussion is whether SpaceX will “end up in index funds.” An index is a list of stocks used as a benchmark, like the Nasdaq-100 or the S&P 500. Index funds and ETFs are like autopilot portfolios that try to copy those lists, so they buy the same stocks.

Why it matters

Because SpaceX could be so large, analysts expect it to qualify for major indexes relatively soon after it starts trading, as long as it meets normal requirements like enough public shares and a minimum trading history. If that happens, many retirement accounts and everyday investment funds could end up owning SpaceX automatically.

What is not supported by the latest reporting is the idea that Nasdaq, S&P, or FTSE Russell have announced special, SpaceX-specific rule changes to fast-track it into indexes.

Source: NYTimes