August 23, 2021

SPACs Could Catch a Break on Nasdaq Initial Listing Fees

Last week, the SEC issued this notice that grants immediate effectiveness to a Nasdaq proposal that amends Listing Rule 5910 to modify the application fee for “Acquisition Companies” that list on the Nasdaq Global Market. The rule change reduces the initial application fee from $25k to $5k – in line with the fee charged to companies applying to list on the Nasdaq Capital Market.

Nasdaq says that this fee is used to offset the cost of conducting its regulatory review of the initial listing application – and that those reviews are less costly for Acquisition Companies because there is no underlying operating business and often no historical financials. At the NYSE, Acquisition Companies aren’t subject to the initial application fee, which is $25k for most companies.

The SEC is also seeking comments on the amendment, and may temporarily suspend the rule within 60 days if needed. If the SEC does that, it would then initiate proceedings on whether the rule should be approved or disapproved.

Liz Dunshee