FTSE Russell has changed its index rules as attention grows around the expected SpaceX IPO. The new policy allows very large newly listed companies to enter its main indexes faster than before, provided they meet the Russell Top 500 market value test.
The rule arrives as SpaceX prepares for what could become one of the largest public listings ever. The planned IPO has also sparked debate over valuation, passive fund demand, early trading swings, and investor access.
FTSE Russell said IPOs with investable market capitalizations above the Russell Top 500 cutoff can qualify for fast entry after their fifth trading day. Under the earlier process, eligible companies had to wait for quarterly index reviews.
Arne Noack, Head of Equity and Multi-Asset Indices for the Americas at FTSE Russell, said, “The introduction of a fast entry mechanism for sizable IPOs enables the indexes to reflect significant market developments more promptly.” The change means large IPOs can enter tracked indexes much sooner.
The index provider, owned by London Stock Exchange Group, follows a similar move by NASDAQ. The latter has already cut its index inclusion waiting period to 15 days from at least three months. Meanwhile, S&P Dow Jones Indices continues to review possible rule changes.
More than $30 trillion in global assets track indexes with rules already changed or under review. Therefore, faster inclusion could create early demand from passive funds if a major listing qualifies.
However, some investors remain cautious. They argue that quick index entry can force passive funds to buy shares before stable market pricing develops.
The SpaceX IPO has become the main focus of the rule changes. Reports say the company aims to raise about $75 billion at a valuation near $1.75 trillion, which would make it a record public debut.
SpaceX is expected to list on NASDAQ under the ticker SPCX, with trading possibly starting as early as June 11. The company’s expected size has pushed index providers to review how quickly large private firms should enter major benchmarks.
The IPO filing presents SpaceX as more than a launch company. It points to Starlink, orbital launch services, AI data center contracts, and consumer connectivity as major business areas. Reports also cite Starlink’s 2025 sales at about $11.4 billion.
However, the valuation has drawn questions. Financial and tech analyst Ed Elson criticized the IPO after reviewing the filing. He said, “I read all 277 pages of SpaceX's IPO filing so you don't have to. Losses are up 700 percent. Revenue decelerating. 107x price-to-sales multiple. It's a trainwreck.”
The quoted criticism has added to doubts around the listing. Still, investor attention remains high as SpaceX moves closer to its public debut.
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Speculative trading has already started before the IPO. Crypto exchanges such as Hyperliquid and Binance have offered synthetic and perpetual pre-IPO contracts tied to implied SpaceX share prices. These products allow price exposure, but they do not give investors ownership in SpaceX shares.
Meanwhile, Indian investors face limited direct access to US IPO allocations. As a result, some are looking at global space ETFs and Liberalised Remittance Scheme routes for exposure. There are no local pure-play space stocks in India.
Reuters data shows that about three-quarters of recent large IPOs underperformed the S&P 500. That history has added caution around large debut valuations, especially when companies launch at high price-to-sales multiples.
FTSE Russell will calculate investable market capitalization using the free-float shares available at the IPO and the stock’s closing price on its first trading day. Therefore, SpaceX’s first sessions could decide whether it qualifies for faster index entry under the new rule.