SpaceX seeks rapid inclusion in stock indexes after IPO - WSJ

Elon Musk's SpaceX is counting on early inclusion in stock indexes after going public, which could come as early as later this year. Sources told The Wall Street Journal that the company's advisers have contacted major index providers, including Nasdaq, to discuss how SpaceX could get into key benchmarks sooner than usual.

Companies typically have to wait several months after an initial public offering before they can be added to one of the leading indexes, the WSJ writes. Adding to them opens up access to expanded retail and institutional capital, especially from funds that follow the indexes and are required to hold the included issuers in their portfolios. The traditional waiting period just helps newly public players demonstrate that they are stable enough to withstand large-scale buying, the publication explains.

SpaceX is hoping to bypass the rules to provide liquidity to its shareholders more quickly in its planned IPO, the WSJ points out. The company's advisers are pushing for index policy changes, its sources said, adding that Musk's plan could benefit other private companies with high valuations. AI startups OpenAI and Anthropic are also expected to go public this year.

Earlier this week, the Nasdaq exchange presented proposals to update the methodology of the Nasdaq 100 index, the WSJ writes. They included a possible mechanism of "quick entry" 15 trading days after the initial public offering, in case the company was in the top 40 among index participants in terms of capitalization. At current valuations, SpaceX, OpenAI and Anthropic would meet this criterion.

The S&P Total Market index and MSCI indexes already have accelerated inclusion options, and SpaceX advisors are exploring those options as well, sources told WSJ.

The key U.S. stock market index, the S&P 500, does not have an early add option.

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