The SpaceX IPO Could Trigger the Biggest Portfolio Reshuffling in Years. Are You Ready?
The S&P 500 index is sticking to its rules, but other indexes are making changes to add SpaceX as quickly as possible.
The SpaceX IPO Could Trigger the Biggest Portfolio Reshuffling in Years. Are You Ready?
Overview
The din around SpaceX is deafening, transcending Wall Street's news platforms and spilling into the news that Main Street reads. That's partly related to the massive scale of the deal, with the initial public offering (IPO) expected to raise $75 billion. At the IPO price of $135 per share, SpaceX estimates its market cap would be nearly $1.8 trillion. This is not an ordinary IPO.
Notably, the IPO is oversubscribed, which means more people want to buy the stock than there are shares available. There could be a notable first-day pop in the price, and the hype around the IPO is likely to be huge. But the story gets even more interesting when you examine what indexes are doing.
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Originally published at www.fool.com.
