SpaceX Files for $75B IPO at $1.75T Valuation; Nasdaq Cuts Inclusion to 15 Days
SpaceX confidentially filed for an IPO on April 1 targeting a $1.75 trillion valuation and up to $75 billion in new shares. Nasdaq’s Fast Entry rule cuts index inclusion to 15 trading days and waives the 10% public float requirement, paving rapid 401(k) entry with as little as 5% float.
1. SpaceX Confidential IPO Filing
On April 1, SpaceX submitted confidential paperwork for an IPO aiming for a $1.75 trillion valuation and to raise up to $75 billion, which would make it the largest U.S. IPO on record by a wide margin over Alibaba’s 2014 debut.
2. Nasdaq Fast Entry Rule Change
Nasdaq’s new Fast Entry rule, approved March 30, reduces the index inclusion waiting period from three months to just 15 trading days for any newly listed company within the top 40 of the Nasdaq-100 and removes the 10% public float mandate.
3. Rapid 401(k) Inclusion Implications
With a debut valuation placing it among the top ten Nasdaq-100 components, SpaceX shares would be forced into ETFs and index funds tracking the Nasdaq-100, including major retirement vehicles, almost immediately after listing.
4. Criticisms Over Insider Liquidity
Industry veterans warn that a potential 5% float equals roughly $87.5 billion in tradable stock against $1.4 trillion in passive demand, creating a scenario where insiders could sell large positions when 90 to 180 day lockups expire.