Keep pulling the thread on Elon Musk.
The upcoming SpaceX IPO is anticipated to have a potential valuation of approximately $2 trillion.
Major stock indexes are in the process of changing their inclusion rules specifically for the SpaceX IPO and other potential mega-cap IPOs.
SpaceX is targeting a $75 billion equity offering for its initial public offering.
SpaceX plans to unlock between 50% and 80% of its total shares for a subset of holders by day 180 after its IPO.
S&P is changing its index inclusion rule for mega-cap IPOs from a 12-month seasoning period to 6 months.
Russell is officially changing its index inclusion rule for mega-cap IPOs to a 5-day waiting period.
NASDAQ is changing its index inclusion rule for mega-cap IPOs to a 15-day waiting period.
Passive investment funds are expected to purchase between $19 billion and $20 billion worth of SpaceX stock following its IPO.
Eric Balchunas estimates that after 6-7 months, half of SpaceX's $75 billion IPO float will be absorbed by active and passive funds benchmarked to the S&P 500.
Some early investors in SpaceX have seen the value of their holdings increase by 400% to 1,000% based on derived valuation marks.
The Fidelity Contra Fund holds $8 billion worth of pre-IPO SpaceX stock.
The Baron Partners Fund (BPTRX) has a 33% allocation to pre-IPO SpaceX stock.