SpaceX insiders will get to sell shares earlier than usual after the IPO
SpaceX is adjusting its lock-up structure in response to new Nasdaq rules that allow for quicker inclusion in the Nasdaq 100. This change is aimed at facilitating a faster ramp-up of share availability post-IPO, which could attract institutional investors. Founder Elon Musk will not participate in the early-release provisions and is expected to remain locked up during this period.
- ▪SpaceX's new lock-up structure responds to Nasdaq rules for faster entry into the Nasdaq 100.
- ▪The company is likely to go public with a small float, incentivizing a quick ramp-up of shares.
- ▪Elon Musk will not be allowed to sell shares early and will remain locked up.
2 outlets in our directory ran this story. All of the coverage we found sits in one bucket: centre. That one-sidedness is itself worth noticing.
CNBC — Top files mainly under finance. We currently carry 465 of its stories.
Opening excerpt (first ~120 words) tap to expand
The unique lock-up structure is likely a response to new Nasdaq rules to include "fast entry" for new listings to be included on the Nasdaq 100. As of May 1, companies with market caps above the 40 largest members in the Nasdaq 100 – SpaceX, based on its expected valuation, would qualify – are eligible for inclusion several weeks after their IPO. While the Nasdaq changed the 10 percent minimum free float requirement, it does give companies a lower weighting in the index until they have more shares available for trading. That's why SpaceX, which is likely to go public with a very small float, has an incentive to ramp soon after. Inclusion in the Nasdaq 100 can trigger a wave of forced buyers from index funds and institutional investors who need to match their benchmarks.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Top.
Discussion
0 commentsMore from CNBC — Top
