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ARTICLE · 14 APRIL 2025

Understanding Nasdaq's New Liquidity Benchmarks: Initial Listing Changes Effective April 11, 2025

McMillan LLP
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On December 12, 2024, the Nasdaq Stock Market LLC ("Nasdaq") filed a proposed rule change with the United States Securities and Exchange Commission (the "SEC") to modify Nasdaq Listing Rules 5405 and 5505 (the "Proposal").

CanadaCorporate/Commercial Law
Michael Shannon
Michael Shannon
Julia Currie
Julia Currie
Cassandra Buchan
Cassandra Buchan
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On December 12, 2024, the Nasdaq Stock Market LLC ("Nasdaq") filed a proposed rule change with the United States Securities and Exchange Commission (the "SEC") to modify Nasdaq Listing Rules 5405 and 5505 (the "Proposal").1 The Proposal aims to make Nasdaq's initial listing liquidity requirements more rigorous for issuers applying to list or uplist their securities on the Nasdaq Global Market or Nasdaq Capital Market in connection with a public offering. The Proposal seeks to amend Nasdaq Listing Rules 5405 and 5505 by:

(i) requiring a company listing on the Nasdaq Global Market or Nasdaq Capital Market in connection with an initial public offering ("IPO"), including through the issuance of American Depository Receipts ("ADRs"), to satisfy the applicable Market Value of Unrestricted Publicly Held Shares ("MVUPHS") requirement solely with the public offering proceeds;

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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