Key facts
- SpaceX's IPO is expected to be the largest in history.
- The company's road show began on Thursday.
- Index providers have adjusted rules for faster inclusion of SpaceX.
- Nasdaq will allow SpaceX into the Nasdaq 100 in 15 trading days.
- FTSE Russell 1000 inclusion could occur after five trading days.
- Fidelity's Contrafund values its SpaceX stake at approximately $8 billion.
SpaceX is poised to launch what is expected to be the largest IPO in history, with its road show commencing on Thursday. The company's size and its anticipated inclusion in major stock indexes are driving significant investor demand, with some viewing it as 'too big to fail.' Index providers like Nasdaq and FTSE Russell have modified their rules to allow SpaceX to be added to their indexes much faster than usual, providing institutional backing. Fidelity's Contrafund already holds an $8 billion stake in SpaceX, making it a substantial holding. Investors are comparing the offering to Facebook's 2012 IPO due to its size and founder-friendly share structure. The deal is expected to be straightforward, with a fixed share price target, indicating that much of the valuation work has already been done by investors. The inclusion in 'price-insensitive' indexes and ETFs will ensure broad market exposure, making it a significant addition to the public markets.