According to TD Securities, SpaceX’s most important dates have yet to materialize.
Peter Haines, the company’s head of indexes and market structure, suggested SpaceX’s public offering is only a small part of a larger story. space x timeline.
He urged investors to pay close attention to when SpaceX is added to major indexes such as the S&P Total Market Index, MCI Global Index, and Russell Index. Nasdaq 100 early this summer.
“The 15th day[of SpaceX going public]which should have been July 6th… will be the day the Nasdaq rebalances its 100 index to reflect SpaceX’s IPO stock,” he told CNBC’s “ETF Edge” ahead of this Friday’s IPO. “From there, we will consider when the index will adjust for additional stocks that will become freely tradeable in the future.”
In what Haynes called a “controversial decision,” the S&P 500 index committee announced earlier this month that SpaceX would not be quickly added to the index. That means Elon Musk’s rocket maker will have to trade on the market for at least a year before becoming eligible.
“This leaves us with other benchmarks and their rebalance schedules,” Haines said.
The decision has bigger implications for future index events, he says, as many stocks will become freely tradable and will need to be reflected in benchmarks.
SpaceX listed on the Nasdaq at 11:46 a.m. ET on Friday. Shares rose more than 19% to close at $160.95. The market capitalization exceeded $2 trillion.
“We take for granted that the infrastructure that supports our stock trading business is always functional. Today was a test of that infrastructure, and in my opinion, the industry has passed the test,” Haynes said in a special note to CNBC after Friday’s market close.
