The SpaceX IPO Is Days Away: Could the Stock Join the S&P 500, and How Soon?
Index fund buying could one day become a powerful force behind the rocket maker's stock. But some of the index's oldest rules stand in the way.
The SpaceX IPO Is Days Away: Could the Stock Join the S&P 500, and How Soon?
Overview
On Friday, SpaceX (NASDAQ: SPCX) is expected to begin trading on the Nasdaq in what would be the largest initial public offering (IPO) on record. The rocket and satellite company plans to sell about 556 million shares at $135 apiece, giving it an initial market value of about $1.77 trillion and raising about $75 billion. Investor demand has reportedly topped $250 billion -- more than three times what the company is seeking.
A market value of $1.77 trillion would make SpaceX about the seventh-most valuable company in the U.S. Yet nearly every company near that scale has something SpaceX won't: a spot in the S&P 500, the benchmark behind trillions of dollars of index funds.
Details
So, could the stock join the index -- and how soon? Here's a closer look at the S&P 500's actual rules, and what Tesla's (NASDAQ: TSLA) long-delayed inclusion suggests about the answer.
Source
Originally published at www.fool.com.
