SpaceX, cited as the "biggest fish" in the initial public offering (IPO) market, is increasingly likely to push for a listing on the U.S. Nasdaq. As reports say the company is also reviewing a plan to be added early to the Nasdaq-100 index after listing, market interest is rising further.
Reuters reported on the 10th (local time), citing multiple sources, that SpaceX, led by Elon Musk, is leaning toward Nasdaq as its listing venue. In particular, SpaceX is said to be considering inclusion in the Nasdaq-100 index within a short period after listing as a key condition. SpaceX is preparing to go public with a target of June this year.
The Nasdaq-100 is a flagship index made up of the top 100 nonfinancial corporations by market capitalization listed on Nasdaq. Large technology stocks such as Nvidia, Apple and Amazon are included.
Previously, it typically took several months for newly listed corporations to be added to major indexes. But the situation is changing as Nasdaq recently reviewed a so-called "fast-track" plan to boost its competitiveness in attracting large IPOs. Under this plan, if a newly listed company's market capitalization ranks within the top 40 among current Nasdaq-100 constituents, it can qualify for index inclusion within one month after listing.
For corporations, inclusion in this index carries significant meaning. That is because various institutional funds that track the index are more likely to flow in. It can also be advantageous for securing trading liquidity immediately after listing and for broadening the investor base.
SpaceX is assessed as a corporation highly likely to meet this criterion. The market expects that through this IPO, SpaceX could be valued at as much as $1.75 trillion (about 2,564 trillion won). If such a valuation materializes, it adds weight to the view that the company could meet the requirements for inclusion in major indexes immediately after listing.
However, the competition to attract SpaceX's listing does not appear to be over yet. The New York Stock Exchange (NYSE) is also reportedly still making efforts to secure the SpaceX listing.