FTSE Russell has adopted a rule change that could give SpaceX a faster path into its main indexes after the company’s expected record setting initial public offering, according to a Bloomberg report.
Under the new policy, IPOs with investable market capitalizations above the cutoff for the Russell Top 500 will qualify for fast entry after their fifth trading day. Previously, eligible companies were reviewed during quarterly index rebalances.
The change could benefit SpaceX as the company prepares for a potential public debut that could raise about $75 billion at a roughly $1.75 trillion valuation, making it the biggest stock market flotation on record. If SpaceX meets FTSE Russell’s size requirements, the company could be added to the index far sooner than under the previous framework.
FTSE Russell said the fast entry mechanism will allow its indexes to reflect major market developments more quickly by adding sizable IPOs sooner.
FTSE Russell’s move follows a similar change by Nasdaq, SpaceX’s expected listing venue, which shortened the waiting period for index inclusion to 15 days from at least three months. S&P Dow Jones Indices is also reviewing possible changes as index providers prepare for larger private companies to enter public markets.
