S&P Keeps 12-Month IPO Seasoning Rule, Blocking Fast Track for SpaceX

S&P Dow Jones Indices will not relax its eligibility rules for flagship benchmarks like the S&P 500, after a consultation on whether mega-cap newcomers should get expedited entry. The 12-month seasoning period for newly public companies stays in place, as do existing profitability and public-float thresholds, regardless of a candidate’s market capitalization.

The decision puts S&P at odds with Nasdaq and FTSE Russell, both of which have moved toward looser treatment for the largest IPOs. For companies like SpaceX that are widely expected to go public at valuations that would otherwise warrant immediate index inclusion, the ruling means a longer wait before passive index funds become forced buyers of their stock.