S&P Dow Jones Indices will maintain existing eligibility criteria, delaying SpaceX’s potential index inclusion despite its $1.8 trillion valuation.
S&P Dow Jones Indices announced it will not alter eligibility rules for the S&P 500, dashing hopes for faster inclusion of mega-cap IPOs like SpaceX. The decision preserves financial viability screens and a seasoning period, which could delay SpaceX’s entry even after its $75 billion IPO on June 12.
The Nasdaq and Russell indexes have adopted fast-track processes for large IPOs, but S&P’s methodology remains unchanged. SpaceX’s $1.8 trillion valuation would make it one of the largest companies in the index, but it must now meet standard criteria before consideration.
Investors anticipating passive inflows from S&P 500 index funds may face a longer wait. The decision underscores S&P’s cautious approach amid a surge in high-profile IPOs this year.