Core Points - Nasdaq has submitted new rule proposals (SR-NASDAQ-2025-068 and SR-NASDAQ-2025-069) to the SEC aimed at enhancing initial and ongoing listing standards, reinforcing long-term commitments to capital formation, investor protection, and market integrity [1][4] Initial Listing Requirements - Companies seeking to list on Nasdaq Capital Market or Nasdaq Global Market must have a minimum public float market value (MVUPHS) of at least $15 million, up from $5 million for Nasdaq Capital Market and $8 million for Nasdaq Global Market [3] - Nasdaq Capital Market requires companies to meet one of three standards: income, market value, or equity, while Nasdaq Global Market includes a fourth option based on total assets/total revenue [3] - The proposed rules aim to align the income standard's minimum MVUPHS with other listing standards, setting it at $15 million for Nasdaq Capital Market and $18 million for equity standard on Nasdaq Global Market [3] Ongoing Listing Requirements - Companies failing to meet ongoing listing requirements and having a market value below $5 million for 10 consecutive trading days will face immediate suspension and delisting [4][5] - The proposed rules eliminate the compliance period for companies that fall below the market value threshold, indicating that significant issues leading to low market value are not temporary [5] Specific Requirements for Chinese Companies - New rules require Chinese companies to raise at least $25 million through an initial public offering (IPO) to list on Nasdaq, addressing concerns over liquidity and investor protection [5] - Nasdaq noted that 70% of its submissions to the SEC or FINRA since August 2022 have been related to Chinese companies, highlighting ongoing liquidity concerns [5] Implementation Timeline - If approved by the SEC, Nasdaq will implement the changes to initial listing requirements immediately, allowing companies already in the process 30 days to comply with previous standards [6] - Nasdaq plans to implement accelerated procedures for suspension and delisting within 60 days of SEC approval [6]

Core Insights - The article emphasizes the significance of listing on the New York Stock Exchange (NYSE) as both a prestigious achievement and a challenging journey for companies seeking to raise capital and enhance their global reputation [1]. Group 1: NYSE Listing Standards - NYSE has established clear entry standards for different types of companies, focusing on financial and liquidity metrics [2]. - The primary financial standards include: - **Profitability Test**: Requires a minimum of $10 million in pre-tax revenue for the most recent fiscal year [3]. - Cumulative profit of at least $100 million over the last three fiscal years, with no less than $25 million in each year [4]. - **Valuation/Revenue Test**: Requires a global market capitalization of at least $200 million and revenue of at least $100 million for the most recent fiscal year [6][7]. - Cumulative cash flow of at least $25 million over the last three fiscal years, with positive cash flow each year [8]. - Special standards exist for holding companies and related companies, with NYSE showing flexibility to attract high-growth tech firms [10]. - Companies must also meet liquidity requirements, including having at least 400 round lot shareholders or 2,200 shareholders with a minimum average trading volume [11][12][13][14]. Group 2: IPO Process Overview - The IPO process is lengthy and complex, requiring meticulous preparation and execution [17]. - **Phase 1: Preparation and Team Formation (1-3 months)**: - Internal restructuring to align with public company standards [18]. - Assembling a team of underwriters, legal advisors, accountants, and depositary banks if applicable [19][20][21][22]. - **Phase 2: Due Diligence and Document Preparation (2-4 months)**: - Comprehensive due diligence to ensure all information is accurate and complete [23]. - Drafting the F-1 form, which serves as the core document for the IPO [23]. - **Phase 3: Confidential Submission and SEC Review (3-6 months)**: - Companies can submit F-1 documents confidentially under the JOBS Act, allowing for initial inquiries without public disclosure [24]. - The SEC conducts detailed inquiries, requiring thorough responses and document revisions [25]. - **Phase 4: Roadshow, Pricing, and Listing (2-4 weeks)**: - Conducting roadshows to attract institutional investors and gauge interest [26]. - Pricing the IPO based on investor demand and market conditions [27]. - Final submission of the prospectus and listing on the exchange [28][29]. Group 3: Post-IPO Considerations - Successful listing is just the beginning; companies must focus on ongoing compliance and market engagement [31]. - Continuous compliance with reporting requirements and internal control standards is essential [32]. - Companies must manage market volatility and investor expectations effectively [33]. - The ultimate goal is to create long-term shareholder value through sustained business growth and transparent governance [34].