Biotech Values

[dangerM]

> It’s curious that both CLLS and its ag-biotech subsidiary, CLXT are being added.

How much do the index funds typically buy? Judging from the current holdings of the iShares IBB, they alone will buy into about 1.5% of CLXT's free float market capitalisation (i.e. 5,550,000 x 1.5% = 83,250 shares)?

Is there a rule what happens in case of a squeeze situation (temporary or permanent exclusion from the index)? As of 2017-09-29/30 the institutional holdings already exceeded the free float, perhaps due to miserable data quality of 13F/G, perhaps due to short selling (cf. http://www.nasdaq.com/symbol/clxt/institutional-holdings and
http://www.nasdaq.com/symbol/clxt/short-interest).

P.S.: I guess CLXT is a fringe case. I looked up the index criteria and they were really lucky to have enough volume in Octobre (criterium of having on average > 100,000 shares traded daily) and just so fulfill the 20% free float criterium. I might somehow doubt the interpretation of being "seasoned" where being a spin-off is somewhat of an (allowed) excuse.

*
https://indexes.nasdaqomx.com/docs/methodology_NBI.pdf
https://indexes.nasdaqomx.com/docs/NQGIFamilyMethodology.pdf

P.P.S.: At the moment I do not see CLXT as a long-term value investment. The IPO lock-up will end in January (if I am not wrong again) and I guess being part of the IBB will even further increase volatility. So I might be inclined to sell my holdings soon.