4 ms·
From the S-1, looks like they will be excluded from the S&P500: In addition, in July 2017, FTSE Russell and Standard & Poor’s announced that they would cease t
by andysinclair 9y ago
From the S-1, looks like they will be excluded from the S&P500:
In addition, in July 2017, FTSE Russell and Standard & Poor’s announced that they would cease to allow most newly public companies utilizing dual or multi-class capital structures to be included in their indices. Affected indices include the Russell 2000 and the S&P 500, S&P MidCap 400, and S&P SmallCap 600, which together make up the S&P Composite 1500. Under the announced policies, our multi-class capital structure would make us ineligible for inclusion in any of these indices, and as a result, mutual funds, exchange-traded funds, and other investment vehicles that attempt to passively track these indices will not be investing in our stock. These policies are very new and it is as of yet unclear what effect, if any, they will have on the valuations of publicly traded companies excluded from the indices, but it is possible that they may depress these valuations compared to those of other similar companies that are included.
- cjalmeida 9y agoThis seems huge considering how popular ETF are these days.
- uiri 9y agoIf this ever becomes a concern, the class B shareholders can convert their shares 1 to 1 into class A shares. Once all class B shares have been converted, class C shares will also convert 1 to 1 into class A shares. This would then make the company eligible to be included in the S&P 500. I imagine that the class B shares are nontransferable, which means that this will cease to be an issue once the founders have fully cashed out.
- joncrane 9y agoThat is a good find! Wonder why. Also if a significant number of firms are excluded, I wonder if new ETFs will pop up.