The S&P 500 Index, managed by S&P Global Dow Jones Indices, lists some of the largest companies on the planet, and is reportedly mulling changing its rules for entry into the index as Elon Musk-led commercial space flight giant SpaceX gears itself up for an IPO this year.
The index is mulling changing the rules governing how companies are allowed to join in, Bloomberg reported on Thursday, citing anonymous sources familiar with the matter. An expedited entry into the fund could see billions in forced buying of SpaceX stock, as funds tracking the index must buy shares of newly-added companies, the report said.
S&P Global and SpaceX didn’t immediately respond to Benzinga‘s request for comment.
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The index was in talks with parties to see if there was interest in such a rule change, but it was still some time away and awaits a formal consultation. The index has over $24 trillion tied to it, according to the report.
Current rules to enter the index dictate that a company must be domiciled in the U.S., have a market capitalization of at least $22.7 billion and be publicly listed for 12 months.
The news comes as SpaceX is reportedly leaning towards a listing on the NASDAQ, joining several tech companies, including Elon Musk’s Tesla, Inc.. The commercial space flight giant was also pushing to join the NASDAQ 100, an index of the largest companies on the platform, which was questioned by investment firm Gerber Kawasaki‘s co-founder Ross Gerber.
Elsewhere, Musk confirmed that the company was targeting a $1.75 trillion valuation for the upcoming IPO in a post on the social media platform X. SpaceX had recently acquired Musk’s artificial intelligence startup xAI and is also reportedly targeting a dual-class share structure for the IPO.
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This article S&P 500 Rule Change Could Boost Elon Musk-Led SpaceX’s Entry Into Index: Report originally appeared on Benzinga.com
