Looking for getting listed on Nasdaq ?

Companies are in constant requirement of funds especially startups.

These funds are usually required for:

• working capital;
• purchase of fixed assets;
• expansion to domestic or international market;
• acquisition of companies; or
• research and development;

Listing offer low cost raising of funds compared to private fund raising through venture capital or institutional investor. Wherein existing investor would also be keen into listing to get better returns on capital invested in company.

Getting listed on a reputed stock exchange such as the New York Stock Exchange (NYSE) or Nasdaq, because of the obvious benefits, which include:

• An exchange listing means ready liquidity for shares held by the company's shareholders.
• It enables the company to raise additional funds by issuing more shares.
• Having publicly traded shares makes it easier to set up stock options plans that are necessary to attract talented employees.
• Listed companies have greater visibility in the marketplace; analyst coverage and demand from institutional investors can drive up the share price.
• Listed shares can be used as currency by the company to make acquisitions in which part or all of the consideration is paid in stock.

This solution helps

• Private companies
• Founders
• Entrepreneurs
• Investors

WAYS TO LIST ON NASDAQ

A. Nasdaq's IPO Process

• Initial Public Offering ("IPO") - An initial public offering, or IPO, is a company's first sale of stock to the public. Securities offered in an IPO are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. In 2020, Nasdaq extended their IPO leadership with a 83% win rate for operating company IPOs.
• Virtual IPO - At Nasdaq their “Modern Day IPO” process leverages data and technology to open IPOs electronically and remotely. Even when physical trading floors were closed during the pandemic, Nasdaq uses its same technology to launch IPO first trades in coordination with the lead underwriter to provide best-in-class IPO execution.

B. Nasdaq Direct Listings

• The term direct listing refers to a private company listing on Nasdaq, or another exchange, without concurrently raising capital. Generally, companies list on a national securities exchange in connection with a capital raising transaction, such as an initial public offering. By contrast, a direct listing allows a company to list securities and begin trading without selling additional securities to public investors.

C. SPACs: Special Purpose Acquisition Companies

• Special Purpose Acquisition Companies (SPACs) are publicly-traded investment vehicles that raise funds via an IPO in order to complete a future acquisition. They enable private companies to have a unique way to access the public markets, while offering investors a way to co-invest side-by-side with best-in-class sponsors. In 2020, Nasdaq welcomed 71% percent of U.S. business combinations, including DraftKings, Opendoor and Luminar Technologies.

D. American Depository Receipts (ADRs)

• American Depository Receipts (ADRs) are securities that trade in the U.S. but represent a specified number of a non-U.S. company’s shares. ADRs trade and settle like other securities and are priced in U.S. dollars, regardless of the currency of the underlying shares. Only “sponsored” ADRs are eligible to list on Nasdaq, and the issuer of an ADR must register with the SEC and comply with U.S. securities laws, including the periodic reporting requirements.

E. Transfer of listing

• A transfer of listing refers to a company that is already listed on another U.S. exchange or trades on a non-U.S. exchange and is transferring its securities to Nasdaq. In recent years, $1.9 trillion in market cap has transferred to Nasdaq.

F. Nasdaq International Designation Program - boosts global credibility, visibility, and attracts more interest from U.S. Investors.

The Nasdaq International Designation program is designed for Level 1 ADRs and Canadian companies that trade on the over-the-counter (OTC) market.

PROGRAM OVERVIEW

Program offers a unique partnership with Nasdaq that provides member companies with Nasdaq’s robust visibility offering which allows for greater access to US investors, and can potentially increase liquidity. The program does not impose SEC filing requirements or otherwise change your regulatory obligations.

Universe of Level 1 ADRs

Companies that have Level 1 ADRs have a listing on an exchange outside the U.S. and comply with their home market's regulatory environment. Their Level 1 ADRs trade in the U.S. on the over-the-counter (OTC) market. Level 1 ADRs do not report to the SEC, unlike Level 2 ADRs that do file with the SEC and are listed on U.S. exchanges.

Level 1 ADRs Market Cap

There are hundreds of sponsored and unsponsored Level 1 ADRs, representing a total market cap of $15.8 Trillion USD globally. All Level 1 ADRs trade on the OTC regardless of whether they are a member of the Nasdaq International Designation program or have a competing designation. Nasdaq recognized a need to increase the visibility of these international companies with U.S. investors. Nasdaq launched the Nasdaq International Designations on December 9th 2015, with the first group of international companies below. The Nasdaq International Designation is also available to international companies that don’t have Level 1 ADRs, but have shares that trade directly on the OTC market in the U.S.

Trading

Nasdaq International is a designation. The companies are not listed or traded on The Nasdaq Stock Market LLC, and are not subject to the same listing or qualification standards applicable to securities listed or traded on an exchange. The U.S. shares continue to trade on the OTC.

WHERE YOU CAN LIST

A. The Nasdaq Stock Exchange

The Nasdaq Stock Market has three distinctive tiers:

• The Nasdaq Global Select Market?,
• The Nasdaq Global Market? and
• The Nasdaq Capital Market?.

Applicants must satisfy certain financial, liquidity and corporate governance requirements to be approved for listing on any of these market tiers. The initial financial and liquidity requirements for the Nasdaq Global Select Market are more stringent than those for the Nasdaq Global Market and likewise, the initial listing requirements for the Nasdaq Global Market are more stringent than those for the Nasdaq Capital Market.

Corporate governance requirements are the same across all Nasdaq market tiers. It is important to note that even though a company’s securities meet all enumerated criteria for initial inclusion, Nasdaq may deny initial listing, or apply additional conditions, if necessary to protect investors and the public interest.

B. Nasdaq First North Growth Market

Nasdaq First North is our European growth market for small- and medium sized companies. A company can join Nasdaq First North regardless of the country of origin or industry sector. A key factor for success is that there is investor interest for the company’s share. The Nordic region boasts the largest retail presence in the world per capita, with small private investors and professional investors taking an active role in the market.

C. Nasdaq First North Premier Growth Market

Nasdaq First North Premier is our European growth market designed to further assist companies in raising investor visibility and to prepare them for a Main Market listing. The segment targets companies that make a conscious decision to comply with higher disclosure and accounting standards than those imposed on Nasdaq First North.

D. Nordic Main Market

The Main Market is our Nordic regulated market suited to companies that can adhere to the highest standards. Today, more than 680 companies are traded across our Main Markets in Stockholm, Copenhagen, Helsinki and Iceland, including some of the most innovative companies in the Nordic region. By listing on the Main Market, companies benefit from increased visibility and investor exposure, and Nasdaq’s efficient and independent surveillance of issuers, members and trading. More than 165 trading member firms engage in the daily trading, with most trades made by international banks and brokerage houses.

E. Baltic Market

Nasdaq Baltic exchanges provide regulated market and First North listing services for a variety of financial instruments as well as services related to the public trading of financial instruments. When seeking a listing, an issuer may choose from among the regulated market and First North organized by the Baltic exchanges, depending on the type of the financial instrument.

WHAT TO LIST ON NASDAQ

A. List Bonds

• Nasdaq Bond Exchange - enables issuers to meet their listing needs for non-convertible bonds.
• Listing of Debt Instruments - list your fixed income instruments at a globally recognized exchange

B. List ETFs and ETPs with Nasdaq

• Nasdaq ETFs - Exchange Traded Funds or European Exchange Traded Products (ETPs) 

Exchange Traded Funds (ETF) are very popular and combine the benefit of a fund with the flexibility of a stock. The ETFs listed on Nasdaq Nordic track the performance of a wide variety of underlying asset classes. There are also ETFs that provide magnified exposure to these assets through leveraged funds, which create the potential for several times greater daily return.

• Warrants & Mini Futures

Warrants can be an attractive way to trade with a limited amount of invested capital.

• Tracker Certificates

A tracker certificate is a certificate issued by a bank or financial institution. A tracker certificate reflects the change in value of the underlying asset’s price movement 1:1.

• Leverage Certificates

A leverage certificate is a certificate issued by a bank or financial institution. The leverage certificate reflects the change in the value of the underlying assets with leverage.

• Certificates

A certificate is a subordinated non-interest bearing debt instrument. The return on an investment in a certificate reflects the return of a specific underlying asset or basket of underlyings.

• Spread Certificates

A Spread Certificate is issued by a bank. It is a combination of a short and a long position in two different underlying assets such as a stock and a commodity.

• Alternative Investment Funds

Nasdaq’s market for Alternative Investment Funds (AIFs) offers investors the opportunity to trade AIFs on a regulated market.

• Actively-Managed Funds

Nasdaq Nordic offers trading in Actively-Managed Funds as a complement to Exchange Traded Funds (ETFs) on Nasdaq Helsinki and Nasdaq Stockholm.

Source : https://www.nasdaq.com/

Visit the Nasdaq Listing Center to:

? Submit listing applications and forms safely and securely

? Reserve symbols

? Learn about our initial listing requirements

? Understand our continued listing requirements

? Find answers to 400 of your most frequently asked questions

Nasdaq Listing Center

Email : [email protected] or

Phone : +1 301 978 8008

Disclaimer : Organization should consult with their consultants or auditors for opinion and options. This article is just for knowledge purpose and should not be used as a reference without consent of author.

Please feel free to contact myself if you have comments, feedback, require any clarification or need any elucidation.

Rupeshkumar Bomali

Mobile : +91 97699 74693

Email ID : [email protected]