SpaceX wants into the S&P 500. The S&P 500 is in no rush to oblige.
S&P Dow Jones Indices announced on June 4 that it will not alter its eligibility criteria for the benchmark index, keeping in place the existing rules that require a 12-month seasoning period and demonstrated profitability for large IPOs. The decision directly impacts SpaceX, which is planning what would be the largest IPO ever, with an estimated valuation between $1.75 trillion and $1.77 trillion.
Other major index providers have already moved to accommodate megacap IPOs with faster inclusion pathways, some reducing waiting periods to roughly 15 days. S&P Dow Jones chose to stand pat.
What the rules actually require
The S&P 500’s inclusion criteria require a company to trade publicly for at least 12 months, and it must show positive cumulative earnings over the most recent four quarters combined with a positive most-recent quarter.
