(Bloomberg) — S&P Dow Jones Indices LLC is considering changes to rules governing how companies join the S&P 500 Index, a move that would potentially fast-track SpaceX\u2019s entry after its IPO, people familiar with the matter said.<\/p>\n
The rule change could mean that billionaire Elon Musk\u2019s space transportation and satellite company would see a wave of billions of dollars in forced buying. Funds that track the index must buy newly added stocks, and roughly $24 trillion is tied to the S&P 500, according to Bloomberg Intelligence.<\/p>\n
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The index provider is engaging with stakeholders to determine whether there\u2019s demand for changing rules, said the people. No decision has been made and S&P would still have to launch a formal consultation that would last several weeks before any change can be made, the people said.<\/p>\n
Any change to the S&P 500\u2019s rules would be momentous. The benchmark, which comprises 500 companies covering about 80% of the market capitalization of the US equity market, includes some of the largest companies in the world.<\/p>\n
A representative for S&P declined to comment. A spokesperson for SpaceX didn\u2019t immediately respond to a request for comment.<\/p>\n
Unlike other indexes, there\u2019s no fast-track for joining the S&P 500. Companies need to meet criteria including having a market capitalization \u2014 the value of outstanding shares \u2014 of at least $22.7 billion, be domiciled in the US and be a public company for 12 months. Any decision to allow a new entrant is made by a committee.<\/p>\n
The potential move comes as large private companies including OpenAI and Anthropic PBC are also considering IPOs as soon as this year. If all of the 10 largest venture-backed US companies were to list and join the S&P 500, they would make up about 4.5% of the index \u2014 more than the weight of the energy sector, the index provider said in a blog post earlier this month.<\/p>\n
Nasdaq is considering a proposal to speed up the inclusion of newly listed, large-cap firms in the widely followed Nasdaq 100 benchmark, and FTSE Russell has launched a consultation on the treatment of large IPOs in its Russell US Equity Indexes.<\/p>\n
Bloomberg LP, the parent of Bloomberg News, offers index products for various asset classes through Bloomberg Index Services Ltd.<\/p>\n
SpaceX could seek a valuation in the IPO of more than $1.75 trillion in a step that would raise as much as $50 billion, people familiar with the preparations have said.<\/p>\n
SpaceX is making early inclusion on the Nasdaq 100 a necessary condition of its potentially choosing to list on Nasdaq\u2019s exchange, Reuters has reported.<\/p>\n
At a $1.75 trillion market value, SpaceX would be bigger than all but five of the companies in the S&P 500 Index \u2014 Nvidia Corp., Apple Inc., Microsoft Corp., Amazon.com Inc. and Alphabet Inc.<\/p>\n
It would be larger by that metric than Meta Platforms Inc., as well as Musk\u2019s own Tesla Inc. \u2014 both listed on the Nasdaq.<\/p>\n
–With assistance from Youkyung Lee and Matt Turner.<\/p>\n
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\u00a92026 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — S&P Dow Jones Indices LLC is considering changes to rules governing how companies join the S&P…\n","protected":false},"author":2,"featured_media":336521,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[1877,19682,85,46,3310,141,145,4688],"class_list":{"0":"post-336520","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-space","8":"tag-bloomberg","9":"tag-bloomberg-news","10":"tag-il","11":"tag-israel","12":"tag-sp-500-index","13":"tag-science","14":"tag-space","15":"tag-spacex"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/336520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=336520"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/336520\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/336521"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=336520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=336520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=336520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}