What Are the Listing Requirements for the NASDAQ?

Rod Turner
Rod Turner

Rod is Founder, Chairman & CEO of Manhattan Street Capital, an online fundraising platform for raising capital cost-effectively, and Medical Funding Professionals’ platform partner.

Below is the guide for the listing requirements for the relevant NASDAQ market – the NASDAQ Capital Market.

The primary consideration is the “Market Value of Publicly Held Stock” which essentially means stock that is in the hands of investors, not insiders.  As an example, if your company had pure investors prior to the offering that held shares valued at $5 mill at the valuation of the Reg A+ offering, then NASDAQ will require that you raise at a minimum $10 mill in the Reg A+. $5 mill + $10 mill = $15 mill. The information below is provided courtesy of VentureLawCorp.com

Nasdaq Capital Market – NASDAQ Listing Requirements

RequirementsEquity StandardMarket Value of Listed Securities Standard(3)Net Income Standard
Net Income from Continuing Operations(In the latest fiscal year or in 2 of last 3 fiscal years)N/AN/A$750,000
Net Tangible AssetsN/AN/AN/A
Market Value Publicly Held Stock(1)$15,000,000$15,000,000$5,000,000
Market Value of Listed Securities(2)N/A$50,000,000N/A
# of Shares Publicly Held1,000,0001,000,0001,000,000
# Public Board Lot Holders300300300
Bid price or Closing price(4)$4.00 $3.00$4.00 $3.00$4.00 $3.00
Shareholders Equity$5,000,000$4,000,000$4,000,000
Market Makers333
Operating History2 yearsN/AN/A

You might be interested in our FAQ about the costs for a Regulation A+ IPO. The FAQ will show you all the fees and upfront costs that you should expect if you decide to take your company public via Regulation A+. 

Related Content:

Reg A+ IPO with Manhattan Street Capital

Cost of taking your company public using Regulation A+

IPO Consulting Service from Manhattan Street Capital

Timeline Schedule for a  Regulation A+  IPO

Notes:

  1. Publicly held shares is defined as total shares outstanding, less any shares held directly or indirectly by officers, directors or any person who is the beneficial owner of more than 10% of the total shares outstanding of the company. Entities in which an officer, director, or 10% owner has voting and/or dispositive power, such as a typical Employee Stock Option Plan, are excluded from publicly held shares.
  2. The term, “listed securities”, is defined as “securities listed on NASDAQ or another national securities exchange.”
  3. Seasoned companies (those companies already listed or quoted on another marketplace) qualifying only under the Market Value Standard must meet the market value of listed securities and the bid price requirements for 90 consecutive trading days prior to applying for listing.

This article originally appeared on Manhattan Street Capital here. Used by permission.