00:00The S&P Dow Jones sticking to its eligibility requirements for benchmark indexes like the S&P 500 to fast
00:08track mega cap IPOs leaving companies like SpaceX to wait 12 months before they are eligible.
00:15Joining us now is Bloomberg's Benedict Camel. And Benny, I wonder if this, which is really an interesting move, is
00:24because S&P doesn't necessarily have to attract these companies for listing.
00:31Well, eventually they do want them, but they're obviously cautious here that they don't want to incite too much volatility
00:37into the index.
00:38And this is what you get when you get these early entrants. You know, you're not quite sure where they
00:43are going to go in terms of their profitability, in terms of the stableness of the business.
00:48And if we look at the SpaceX numbers, you know, there are a lot of question marks in terms of
00:53the growth trajectory, in terms of the stable delivery of their operations and so on.
00:58So what we're hearing now, or what S&P is suggesting, is, you know, we need to sort of preserve
01:03some state of normalcy here.
01:05And, you know, in an IPO process that has been everything but normal, from the listing to the price and
01:11so on.
01:12So this is obviously not great for some of the sort of passive funds that track the IPO because they
01:19track the index.
01:20So that means that they will be excluded here.
01:22So that's not great, but this is sort of them trying to find a balance, S&P that is, between
01:27stability and sort of going after the hype, as it were.
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