SpaceX is currently favoring a listing on the Nasdaq for what could become one of the largest initial public offerings in history, according to people familiar with the company's deliberations. A key condition for a Nasdaq listing, these people say, is early admission into the Nasdaq 100 index.
The company remains in a decision phase and its plans could still shift, the people added. The New York Stock Exchange is also in competition to host the listing, and neither exchange has been formally informed of a final choice, according to those with knowledge of the situation.
Executives and advisors for SpaceX have discussed ways to accelerate index inclusion with major index providers, aiming to shorten the customary waiting period that newly listed companies face before being eligible for membership in benchmark indexes. Earlier reporting indicated that SpaceX could file for an IPO as soon as June.
Why early index inclusion matters
Admission to a major index such as the Nasdaq 100 provides access to a broad base of institutional investors who allocate capital through index funds and large passive strategies. Inclusion tends to deepen liquidity over time and can reduce the market impact when executives and early investors eventually sell shares after lockup periods end.
For a megacap IPO, the liquidity benefits associated with Nasdaq 100 membership are particularly prized because the index is widely followed by large investors and is considered a bellwether for the biggest publicly traded technology and growth names. The Nasdaq 100 is home to many megacap technology companies whose stock performance influences global portfolios.
Nasdaq’s proposed fast-track rule
Nasdaq has proposed an expedited path for high-valuation new listings that would allow accelerated entry into the Nasdaq 100. Under the suggested "Fast Entry" rule, a newly listed company whose market capitalization places it among the index's top 40 members would be eligible for inclusion in just under a month. That proposed change is not final and could take several months to be implemented.
The rule change has been framed as a way to attract richly valued private firms considering public listings, a cohort that observers expect to include several well-known technology and AI-related companies.
Valuation and market placement
People familiar with SpaceX’s thinking say the company is targeting an IPO valuation of about $1.75 trillion. At that level, based on recent public market prices, the company would rank roughly as the sixth-largest U.S. public company by market value.
Currently, newly listed companies typically must wait up to a year before becoming eligible for entry into major indexes such as the S&P 500 or the Nasdaq 100. The waiting period is intended to give investors time to assess whether a new listing can absorb large volumes of institutional buy orders without undue volatility.
Market context and potential implications
The Nasdaq 100 returned about 21% over the prior year and has seen modest declines so far this year. For a newly listed megacap, immediate inclusion in the Nasdaq 100 could amplify demand from index-tracking funds and other large investors, broadening the shareholder base and improving secondary-market liquidity.
That deeper pool of liquidity may lessen the price impact of significant sell orders after lockup expirations, which typically fall between 90 and 180 days post-IPO. However, accelerated index inclusion does not eliminate the risk that concentrated insider selling could weigh on a share price.
Process and next steps
Advisers to SpaceX have reached out to index providers, including Nasdaq, to discuss mechanisms for earlier-than-normal index admission. The company is still weighing exchange venues and has not announced a final decision. Market participants and potential investors are watching closely given the prospect that SpaceX’s debut could be the headline event in a busy IPO calendar that includes several prominent venture-backed and AI-related companies preparing for public offerings.
SpaceX did not respond to requests for comment.