SpaceX seeks early index entry as it prepares massive IPO

Subscribe to enjoy similar stories. Elon Musk’s SpaceX is seeking an early boost for shares after the rocket-and-satellite business makes its stock market debut later this year. Advisers for the company, which recently merged with xAI, have reached out to major index providers, including Nasdaq, to discuss how SpaceX and this year’s other hot startups might join key indexes sooner than normal, according to people familiar with the matter.

Companies typically must wait several months or a year after their public debut before gaining inclusion in a major index such as the S&P 500 or the Nasdaq 100. Inclusion unlocks access to retail and institutional capital from funds, particularly those mimicking the performance of indexes that have to hold the companies in the index. The traditional waiting period is intended to give the companies time to demonstrate that they are stable and liquid enough to handle extensive buying from index funds.

SpaceX hopes to skirt traditional rules in an effort to bring liquidity to its shareholders sooner as part of its planned IPO. SpaceX advisers have sought index policy changes that would fast-track its entry into major indexes for the company and benefit other highly-valued private companies, the people said. Last valued at $800 billion, SpaceX is targeting a valuation of more than $1 trillion, a listing that would become the largest-ever U.S.

IPO. SpaceX and AI startups OpenAI and Anthropic are expected to list as soon as this year, which could be a banner stretch for IPOs, some bankers say. Finding a stable investor base will be important to their long-term success as publicly traded stocks.