Report: Proposed Changes to Nasdaq Listing Standards

Dear Clients and Partners

Nasdaq has recently proposed significant changes to its listing standards, which we wanted to give you a full briefing on. These reforms are a direct response to recent market manipulation incidents, including pump-and-dump schemes that cost investors billions. They mark the latest step in a decade-long tightening of listing standards, with meaningful implications for micro-cap issuers, China-based companies, and investors alike

These reforms include:

• Raising the minimum public float for certain listings to $15 million (a 3x increase)
• Introducing a $25 million minimum IPO proceeds requirement for companies primarily operating in China
• Accelerating delisting for companies with market caps under $5 million

We’ve prepared a strategic presentation, attached here, outlining:

• The evolution of Nasdaq’s standards (2019–2025)
• Case studies of manipulation that drove these changes
• Specific impacts on Chinese issuers, small caps, and investors
• Recommended action items and timelines for stakeholders

We encourage boards, executives, and capital markets teams to review these developments closely, as they will influence listing maintenance efforts, IPO planning, compliance strategies, and investor communications going forward.

As always, our team is available to assist with any questions

Best regards,

The Team at Arx

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