The S&P 500 Index, managed by S&P International Dow Jones Indiceslists some of the largest companies on the planet, and is reportedly changing its rules for entry into the index Elon MuskChief executive of commercial space flight SpaceX Gearing up for an IPO this year.
Bloomberg reported Thursday, citing unnamed sources familiar with the matter, that the index is considering changing the rules on how companies are allowed to participate. The report said that rapid entry into the fund could see billions in forced purchases of SpaceX stock, as index-tracking funds must buy shares of newly incorporated companies.
S&P Global and SpaceX did not immediately respond to Benzinga’s request for comment.
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The index has been in discussions with the parties to see if there is interest in such a rule change, but this is still some time away and awaits official consultation. According to the report, the index is tied for more than 24 trillion dollars.
Current rules to enter the index dictate that a company must be based in the United States, have a market capitalization of at least $22.7 billion and be publicly listed for 12 months.
The news comes as SpaceX is reportedly set to list on the NASDAQ, joining a host of tech companies including Elon Musk. Tesla Inc.. The commercial spaceflight giant also pushed to join the NASDAQ 100, an index of the largest companies on the platform, which was asked by the investment firm. Gerber Kawasakiis a co-founder Ross Gerber.
Elsewhere, Musk confirmed that the company is targeting a $1.75 trillion valuation for its upcoming IPO in a post on social media platform X. SpaceX recently acquired Musk’s artificial intelligence startup. xAI And is also reportedly targeting a dual share structure for the IPO.
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This article S&P 500 rule change could boost Elon Musk-led SpaceX entry into index: Report originally appeared on Benzinga.com
(tags translation)SpaceX
