In a bid to prevent the volatility that followed several deals in 2022, Nasdaq Inc. (NASDAQ:NDAQ) is reportedly increasing its scrutiny of small initial public offerings from China and Hong Kong.
What Happened: Nasdaq is putting IPO applicants from China and Hong Kong through a rigorous vetting process, Bloomberg reported on Thursday, citing people familiar with the matter.
The focus is on the identity and independence of the pre-IPO investors selling shares in the listings. This move comes after several micro-cap stocks from China and Hong Kong experienced extreme volatility in their 2022 trading debuts, followed by significant crashes.
The increased scrutiny has not resulted in any halted IPOs yet, but it has extended the process by weeks, adding uncertainty and costs to the usual quick review. This has affected around 20 companies from China and Hong Kong that have listed on Nasdaq this year, raising a combined $195 million.
As part of the review, Nasdaq officials are asking about the backgrounds of the selling shareholders, their connections and history with the company and with each …
Full story available on Benzinga.com
In a bid to prevent the volatility that followed several deals in 2022, Nasdaq Inc. (NASDAQ:NDAQ) is reportedly increasing its scrutiny of small initial public offerings from China and Hong Kong.
What Happened: Nasdaq is putting IPO applicants from China and Hong Kong through a rigorous vetting process, Bloomberg reported on Thursday, citing people familiar with the matter.
The focus is on the identity and independence of the pre-IPO investors selling shares in the listings. This move comes after several micro-cap stocks from China and Hong Kong experienced extreme volatility in their 2022 trading debuts, followed by significant crashes.
The increased scrutiny has not resulted in any halted IPOs yet, but it has extended the process by weeks, adding uncertainty and costs to the usual quick review. This has affected around 20 companies from China and Hong Kong that have listed on Nasdaq this year, raising a combined $195 million.
As part of the review, Nasdaq officials are asking about the backgrounds of the selling shareholders, their connections and history with the company and with each …
Full story available on Benzinga.com
In a bid to prevent the volatility that followed several deals in 2022, Nasdaq Inc. (NASDAQ:NDAQ) is reportedly increasing its scrutiny of small initial public offerings from China and Hong Kong.
What Happened: Nasdaq is putting IPO applicants from China and Hong Kong through a rigorous vetting process, Bloomberg reported on Thursday, citing people familiar with the matter.
The focus is on the identity and independence of the pre-IPO investors selling shares in the listings. This move comes after several micro-cap stocks from China and Hong Kong experienced extreme volatility in their 2022 trading debuts, followed by significant crashes.
The increased scrutiny has not resulted in any halted IPOs yet, but it has extended the process by weeks, adding uncertainty and costs to the usual quick review. This has affected around 20 companies from China and Hong Kong that have listed on Nasdaq this year, raising a combined $195 million.
As part of the review, Nasdaq officials are asking about the backgrounds of the selling shareholders, their connections and history with the company and with each …Full story available on Benzinga.com Read MoreChina, Equities, Hong Kong, Kaustubh Bagalkote, NDAQ, News, Global, Markets, NDAQ, US6311031081, News, Equities, Global, Markets, Benzinga Markets
