Nasdaq 100 owner mulls “fast entry” rule ahead of large-cap IPOs like SpaceX

Nasdaq, the US stock exchange best known for listing major tech companies, has proposed a new rule called “fast entry.” Its aim is to speed up the addition of newly listed large companies to its index.

In a statement, Nasdaq said, “As corporate structures evolve and index-linked assets under management continue to grow, it’s increasingly important that the methodology ensures timely inclusion of the largest Nasdaq-listed non-financial companies and maintains replicability for passive managers.”

The proposal comes as 2026 is shaping up to be one of the busiest years, with large-cap firms in the widely followed equity benchmark slated to go public. The planned revision would allow a new listing to join the Nasdaq 100 after the first 15 trading days. This is a significant break from the current waiting period of at least 3 months.

If Nasdaq’s index-management committee approves it after soliciting input, the change will take effect after the upcoming quarterly rebalance in March.

Elon Musk’s SpaceX to rank among the top 40 current index constituents

Among companies expected to make initial public offerings this year is SpaceX. Its potential $1.3 trillion valuation would make it rank among the top 40 current index constituents. The company would be exempt from standard seasoning and liquidity requirements. 

According to Nasdaq, it would not replace an existing index member and would temporarily increase the number of constituents until the next annual reconstitution, in line with the treatment of spin-offs.

Anthropic is also actively preparing for a potential initial public offering (IPO) this year. The AI startup has already hired IPO lawyers and begun early planning. As reported by Cryptopolitan, the AI company is putting together a deal that will increase its valuation to at least $350 billion. 

Kaasha Saini, head of index strategy at Jefferies, stated, “There could be concern that passive funds will be missing out in a scenario where the new stock does rally even further and then requires higher turnover when adding it in, […] The proposed change would make the index more representative of the market in a timely way.”

The Nasdaq 100 is directly linked to more than $600 billion in exchange-traded funds worldwide. It has been a key indicator of the stock market, as the AI boom has driven huge profits for the biggest tech companies. 

When it comes to IPOs, Nasdaq faces competitors like the New York Stock Exchange. Market watchers say the size of index funds linked to the Nasdaq 100 is likely to help its case for new listings.

Free float requirement changes

Nasdaq also proposed calculating a market cap based on both listed and unlisted shares, rather than only listed shares currently. However, that won’t affect the companies’ weightings in the index, since that will continue to be determined by the value of the shares eligible for listing on the exchange.

Additionally, Nasdaq’s planned revision involves a stock’s free float, or the amount of shares available for trading. The minimum 10% float requirement for eligibility will be removed. However, a new approach is being designed to include companies whose shares are mostly owned by corporate insiders or are not tradable.

These stocks will have their market value multiplied by 5 times, with a cap of 100%, if their free float is less than 20%.That way, funds that use the Nasdaq 100 as a benchmark can still buy in stocks with low float.

Antti Petajisto, head of equities at Brooklyn Investment Group, stated, “Apparently, the idea is to keep low-float firms in the index if they are economically large enough.” 

The IPO market has regained momentum. Global IPO proceeds in 2025 rose to about $171.8 billion, up approximately 39 % from the prior year. The fourth quarter was the strongest in value terms since late 2021, with record fundraising and deal volume. 

Additionally, this week alone marks one of the highest concentrations of IPO activity since 2021 in the US. Several companies are preparing to raise at least $100 million each.

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