00:00Let's talk about SpaceX. A setback potentially as Elon Musk begins the company's roadshow.
00:04S&P Global keeping its eligibility requirements for joining the index, denying SpaceX and other mega IPOs from a fast
00:11track.
00:11Bloomberg's Mandeep Singh joins us now for more. Mandeep, welcome to the program.
00:15This is a different approach than we saw from, say, Nasdaq. How much of a setback is this for that
00:20stock?
00:22I mean, look, they have a very thin float.
00:25So from that perspective, you know, there will probably be more demand than the supply of the stock.
00:30But they're looking to raise $75 billion, and that's a big amount.
00:34And contingent on that $75 billion is that cursor acquisition that they have to close in the first 30 days
00:42post-IPO.
00:43And if that doesn't happen, you know, suddenly it may not look very attractive from an investment perspective.
00:50So that cursor acquisition is very important for SpaceX, and that index piece was key for ETFs to, you know,
00:58include SpaceX in all of their holdings.
01:01And I would say there is definitely a setback here, but it will be interesting to see how that 10th
01:08float weighs in when it comes to the demand for the stock.
01:11Mandeep, given the size of the float relative to the size of the potential market cap and the potential to
01:16go into an index quickly and have all that passive money forced into it, how noisy could the first few
01:23days have been if S&P had thought about fast-tracking this IPO?
01:28I mean, they can't afford, you know, any let-ups here because of that cursor deal.
01:34And they may have to end up paying a termination fee of $10 billion.
01:38So from that perspective, the capital raise, the liquidity event is to facilitate that cursor deal.
01:45And, yes, there is that CapEx aspect around, you know, building more compute.
01:50But to me, the cursor deal is very paramount when it comes to the future prospects of SpaceX and meeting
01:56those growth expectations that investors have.
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