For any company, it is natural to aspire to strong growth and progress. Going public, for instance, is a goal and direction that many companies continuously strive for during their development. After a successful IPO, the overall visibility and status of the company can see a significant improvement. For example, many companies today choose to list on NASDAQ. Of course, to succeed in listing there, they must meet certain requirements. Additionally, many companies are also interested in the benefits of listing on NASDAQ—what concrete advantages it can bring to their development. Today, we will take a closer look at these questions: What are the requirements for a company to list on NASDAQ? What are the benefits? We hope that after our explanation, you will have a basic understanding of these aspects!

What are the listing requirements?

Regarding the requirements for a company to list on NASDAQ, the first condition is that the company must have at least 300 shareholders, with shareholder equity of no less than $15 million. Additionally, the company’s revenue over the past three years must include at least one year with revenue equal to or exceeding $1 million. Alternatively, if the shareholder equity is no less than $30 million, the company only needs to meet one of these conditions. Second, the market value of the company’s publicly traded shares on NASDAQ must not be less than $75 million, which is directly related to the company’s overall development. Besides the aforementioned conditions, another requirement for listing is that there must be at least three market makers participating. The specific conditions can be further explored independently.

What are the benefits for the company?

Above, we discussed the requirements for a company to list on NASDAQ. As for the benefits, they can be explained from different perspectives. A successful IPO proves that the company is performing well in the market, and it also provides opportunities for fundraising, allowing the company to expand its scale further, which is beneficial for overall growth—whether in business expansion or other aspects. This is a crucial point. Additionally, after a successful listing, the company can position itself as an internationally recognized brand. Being listed on the U.S. stock market can serve as excellent publicity, enhancing trust in the company’s products and improving its overall reputation. In summary, going public is a direction and a process in a company’s development. Achieving this goal also serves as a guide for the company’s future growth.