SpaceX set for early MSCI inclusion after listing, making a National Pension Service purchase inevitable
If SpaceX goes public, it would rank in the U.S. by market capitalization at 5–6or above, making early inclusion in the MSCI index likely. In that case, the National Pension Service is also likely to buy shares to manage its benchmark.
If SpaceX conducts an initial public offering (IPO), its market capitalization is expected to rank in the U.S. stock market at 5–6or above. This has prompted expectations that it is likely to be included early in the MSCI index. Those expectations assume that index inclusion will be determined based on market capitalization after listing.
When a stock is included in the MSCI index, institutional investors that track the index or use it as a benchmark add the stock to their portfolios. The National Pension Service, too, is seen as likely to buy shares to manage its benchmark. The article reports that this could generate substantial buying demand from the National Pension Service.
SpaceX is currently a loss-making company. The account says that if a listing coincides with index inclusion, large-scale institutional buying of a loss-making company could become a reality. This trend is cited as an example of index inclusion itself generating buying demand, independently of a company’s profit-and-loss structure.
MSCI indexes select constituents based on market capitalization. Therefore, if a company’s market capitalization is valued highly soon after listing, its inclusion may be brought forward. The timing and weighting of inclusion are determined according to the index’s calculation criteria.
The National Pension Service’s purchases are carried out according to its benchmark management approach and investment strategy. Relevant disclosures and the timing of confirmed inclusion are cited as points of interest for investors. Specific listing schedules and whether inclusion has been confirmed should be checked in materials released later.
Sources: 매일경제 증권
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