Listing on NASDAQ for International Companies
Listing on NASDAQ gives international companies high visibility and access to a diverse pool of investors worldwide. In addition, NASDAQ promotes corporate growth and entrepreneurship by providing companies, market participants and investors with one of the highest quality equity markets in the world.
The U.S. securities markets offer companies access to the richest source of capital in the world as a result of their size, credibility and pool of enthusiastic investors. At the same time, taking a company through a public offering in the U.S. is a major undertaking and presents challenges to companies seeking access to this capital.
Recent changes in U.S. securities law require companies to show their ability to manage control of their systems, operations and financial well being, and to demonstrate integrity, transparency and accountability in all aspects of their business. However, by this same account, a U.S. listing demonstrates to the financial community that a company is among the best run companies in the world.
Considerations for listing on a U.S. stock market
U.S. securities markets offer companies multiple benefits, including supplying the world’s richest source of capital. Listing in the U.S. can provide a company with an infusion of cash to increase shareholder value and fuel long-term growth. Some significant benefits include:
- U.S. stock exchanges provide retail and institutional investors with access to U.S. capital markets, which are the largest and most liquid in the world.
- Currency becomes available for U.S. and global acquisitions. There may also be a lowered cost of capital through accessing U.S. debt and commercial paper markets.
- Having a stock option program can help attract and retain the most talented employees.
- Listing on a U.S. exchange provides your company with multiple marketing benefits, including increased international visibility and credibility, broader brand name awareness and an enhanced reputation.
- The stringent disclosure standards required by U.S. stock exchanges can help generate increased investor confidence.
American Depositary Receipts (ADRs) and Other Listing Strategies
Many public offerings by non-U.S. companies are in the form of depositary receipts, usually as American Depositary Receipts (ADRs). ADRs support distribution and trading of existing shares of stock and capital raising. Each ADR generally represents a multiple or fraction of the underlying securities and is quoted in American dollars. ADRs transfer ownership while continuing to be the registered holder of the underlying securities. They generally are structured so that the trading price for a company’s ADR will be in the range of U.S. $10 to $30. In addition to ADRs, a company can establish other structures that will allow it to list common shares in the U.S. For more information on ADRs, download Going Public in the U.S. – A Listing Guide for European Companies or Going Public in the U.S. – A Listing Guide for Chinese Companies.
Exclusive services for NASDAQ companies
Companies that list on NASDAQ benefit from a portfolio of exceptional services and information programs designed to provide value in all stages of going public and being a publicly held company. Companies can choose the channels that will best serve them, from one-on-one personal contact to fully automated access to services and information. At NASDAQ, we understand the challenges that international companies face when entering the U.S. capital markets and we are here to help.
If you’re interested in learning more about how international companies can benefit from a relationship with NASDAQ please contact a NASDAQ Business Development representative.
NASDAQ Global Select Market
The NASDAQ Global Select Market has the highest initial listing standards of any stock market in the world. A company must meet specific financial and liquidity requirements for initial listing and must continue to meet standards to maintain its listing on the NASDAQ Global Select Market.
NASDAQ Global Market
The NASDAQ Global Market, formerly the NASDAQ National Market®, has a new name that more accurately reflects the global leadership and international reach of this market and listed companies. A company must meet all initial listing criteria of one of the three listing standards for initial listing and must continue to meet standards to maintain its listing on the NASDAQ Global Market.
NASDAQ Capital Market
The NASDAQ Capital Market, formerly the NASDAQ SmallCap MarketSM, was renamed in 2005 to reflect the core purpose of this market — capital formation. A company must meet the minimum financial requirements for initial listing and must continue to meet standards to maintain its listing on the NASDAQ Capital Market.