SpaceX IPO Draws Fire Over Dual-Class Share Structure

SpaceX will rank seventh among U.S.-listed companies when its shares start trading on the Nasdaq after the company priced its IPO. The offering raised $US75 billion, the largest on record, the source said.

Index firms are under pressure from lawmakers over the stock’s governance structure. Senator Elizabeth Warren sent letters to S&P Dow Jones Indices, MSCI, and FTSE Russell asking whether Tesla-class governance rules would qualify SpaceX for index inclusion. SpaceX sells shares with limited voting rights, a structure some investors say bypasses shareholder oversight.

SpaceX shares in the IPO come with multiple share classes that concentrate voting power with CEO Elon Musk and early investors. Index funds that track the Nasdaq 100 or S&P 500 would have to buy the stock once included. Warren asked whether firms planned to adjust index eligibility rules before rebalancing.

S&P Dow Jones Indices said Tuesday it was reviewing its methodology. MSCI declined to comment. FTSE Russell did not respond to questions.

The dual-class structure has become a flashpoint as large private companies enter public markets. Index providers face a choice between market-cap weighting – which would force funds to hold SpaceX regardless of governance – and excluding the stock, which would cap tracking error but invite political pressure.

SpaceX shares begin trading on Dec. 11. The next index rebalance window closes Jan. 15.