Nasdaq has proposed amendments to its listing standards aimed at strengthening market integrity and liquidity for investors. The proposed measures introduce higher thresholds for certain new listings, accelerate delisting processes for thinly traded companies, and impose additional requirements for issuers principally operating in China.
The proposed new rules are:
Revised Net Income Standard: A USD 15 million minimum market value of public float, applicable to new listings on Nasdaq under the net income standard.
Currently, companies listing in conjunction with an initial public offering (“IPO”) under the Net Income Standard must have a USD 5 million public float solely from offering proceeds.
Accelerated process for deficiencies: An accelerated process for suspending and delisting companies with a listings deficiency that also have a Market Value of Listed Securities below $5 million.
Currently, Issuers are sent a deficiency notice if they are out of compliance with the following requirements:
- Minimum Bid Price: Share price is less than $1.00 for 30 trading days
- Market Value of Listed Securities: Market capitalization of less than $35 million for 30 trading days
- Market Value of Publicly Held Shares: Public float less than $1 million for 30 trading days
Special rules for Chinese companies: A USD 25 million minimum public offering proceeds requirement for new listings of companies principally operating in China.
The proposed changes were filed with the U.S. Securities and Exchange Commission (“SEC”) for review on 03rd September 2025. If approved, the implementation timeline will be as follows:
- For the rule changes pertaining to initial listings, companies already in the initial listing process will be given a 30-day grace period. All initial listings thereafter will be expected to adhere to the new rules.
- The rule changes pertaining to trading deficiencies will be implemented 60 days after SEC approval.
The official filings related to the proposed changes may be accessed via the following links:
GCA’s Perspective
Geffyl Corporate Advisory (“GCA”) believes that these reforms will further elevate the quality of issuers on Nasdaq, thus safeguarding investor confidence while reinforcing long-term value creation. For would-be issuers, particularly those in ASEAN, these developments underscore the importance of robust pre-IPO preparation and a carefully structured fundraising strategies.
“Nasdaq’s proposed reforms signal a clear emphasis on liquidity and investor protection,” said Brian Lim, Director at GCA. “We are working closely with our clients to navigate these evolving regulatory thresholds and to position them for successful listings that meet regulatory requirements.”
Please contact GCA for an in-depth discussion about how the new standards may affect your project.
Nasdaq Proposes Enhanced Listing Standards
Nasdaq has proposed amendments to its listing standards aimed at strengthening market integrity and liquidity for investors. The proposed measures introduce higher thresholds for certain new listings, accelerate delisting processes for thinly traded companies, and impose additional requirements for issuers principally operating in China.
The proposed new rules are:
Revised Net Income Standard: A USD 15 million minimum market value of public float, applicable to new listings on Nasdaq under the net income standard.
Currently, companies listing in conjunction with an initial public offering (“IPO”) under the Net Income Standard must have a USD 5 million public float solely from offering proceeds.
Accelerated process for deficiencies: An accelerated process for suspending and delisting companies with a listings deficiency that also have a Market Value of Listed Securities below $5 million.
Currently, Issuers are sent a deficiency notice if they are out of compliance with the following requirements:
Special rules for Chinese companies: A USD 25 million minimum public offering proceeds requirement for new listings of companies principally operating in China.
The proposed changes were filed with the U.S. Securities and Exchange Commission (“SEC”) for review on 03rd September 2025. If approved, the implementation timeline will be as follows:
The official filings related to the proposed changes may be accessed via the following links:
GCA’s Perspective
Geffyl Corporate Advisory (“GCA”) believes that these reforms will further elevate the quality of issuers on Nasdaq, thus safeguarding investor confidence while reinforcing long-term value creation. For would-be issuers, particularly those in ASEAN, these developments underscore the importance of robust pre-IPO preparation and a carefully structured fundraising strategies.
“Nasdaq’s proposed reforms signal a clear emphasis on liquidity and investor protection,” said Brian Lim, Director at GCA. “We are working closely with our clients to navigate these evolving regulatory thresholds and to position them for successful listings that meet regulatory requirements.”
Please contact GCA for an in-depth discussion about how the new standards may affect your project.
Share it out: