Page 7 - Initial Public Offering - An Introduction to IPO on Wall Street
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4.8.2 The Listing Requirements for the Different NASDAQ Tiers ........................................ 99
Listing Requirements for NASDAQ Global Market 11 ............................................................ 100
Listing Requirements for NASDAQ Capital Market ................................................................ 103
Corporate Governance Requirements ....................................................................................... 104
Seasoning Rules ........................................................................................................................ 107
Application Requirements ........................................................................................................ 107
Entry Fees ( Including Initial Application fee) ......................................................................... 108
4.9 NYSE Listing Requirements ............................................................................................... 108
Adjusted Pre-tax Income ........................................................................................................... 109
Global Market Capitalizatio n ................................................................................................... 109
Market ....................................................................................................................................... 109
Held Shares ............................................................................................................................... 109
802.01A Capital or Common Stock (including Equity Fund Monitoring Stock) Allocation
Criteria: ............................................................................................................................... 111
5. Process .......................................................................................................................112
5.1 Why Go Through the IPO Process to Get Listed ................................................................ 112
5.1.1 Raising Capital ............................................................................................................. 112
5.1.2 Providing Existing Investors with an Exit ................................................................... 112
5.1.2 Gaining an Acquisition Currency ................................................................................ 112
5.1.3 Reward and Attract Employees ................................................................................... 112
5.1.4 Market the Company.................................................................................................... 113
5.2 What is the IPO Process? .................................................................................................... 113
5.2.1 Step 1: Choose an IPO Underwriter ............................................................................. 114
5.2.2. Step 2: Due Diligence ..................................................................................................... 114
Firm Commitment ..................................................................................................................... 115
Best Efforts Agreement............................................................................................................. 115
All or None Agreement ............................................................................................................. 115
Syndicate of Underwriters ........................................................................................................ 115
Engagement Letter .................................................................................................................... 115
Letter of Intent .......................................................................................................................... 115
Underwriting Agreement .......................................................................................................... 116
Registration Statement .............................................................................................................. 116
Red Herring Document ............................................................................................................. 116
5.2.3 Step 3: The IPO Roadshow .......................................................................................... 116
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