SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P
S&P Dow Jones Indices will not shorten the 12-month seasoning period for IPOs or waive profitability requirements for mega-cap companies like SpaceX.
S&P Dow Jones Indices announced it will maintain existing eligibility requirements for indices including the S&P 500, rejecting proposals to accelerate entry for large IPOs. The decision keeps the mandatory 12-month seasoning period for newly public companies and retains profitability and public-float requirements regardless of company size. This diverges from actions by competitors Nasdaq Inc. and FTSE Russell, which have already modified their rules. The decision will delay billions of dollars in passive fund inflows to mega-cap IPOs like SpaceX.
What HN community is saying
The thread centers on whether public alarm about the rule change actually influenced S&P's decision. Top commenters note widespread misinformation circulated on social media and among influencers claiming the rule change was a done deal, when other indices (Nasdaq, MSCI, CRSP) had already made changes but S&P's decision remained pending. Some argue the public backlash may have been necessary to prevent approval; others contend HN-level discussion had no effect. A secondary discussion questions whether changing rules mid-game is fair, with one commenter noting that altering index criteria forces portfolio reevaluations and creates artificial volatility in what should be a stable benchmark.