Want to List on NASDAQ? Know the Requirements and Process in One Article

Want to List on NASDAQ? Revealing the Requirements and Steps You Need to Know

In recent years, with the continuous development of global capital markets and the acceleration of internationalization among Chinese enterprises, more and more entrepreneurs have set their sights on overseas financial markets-particularly the NASDAQ Stock Market in the United States. As one of the most influential stock exchanges globally, NASDAQ is renowned for its concentration of high-tech companies, strong liquidity, and flexible regulatory framework. It has become a highly sought-after platform for startups and growing companies.

Since 2025, a number of emerging companies, including several Chinese tech firms, have successfully gone public on NASDAQ, sparking a new wave of interest in U.S. IPOs. But what exactly does it take for a company to list on NASDAQ? And how can one navigate the entire process step by step?

1. Understanding NASDAQ’s Basic Listing Requirements

NASDAQ is one of the three major U.S. stock exchanges, alongside the New York Stock Exchange NYSE and the over-the-counter OTC market. It has clear and stringent criteria for companies seeking to go public. According to NASDAQ's official website, businesses can choose from different listing tiers the Nasdaq Global Select Market, the Nasdaq Global Market, or the Nasdaq Capital Market. Each tier has slightly different requirements regarding financial health, market capitalization, shareholder structure, and more.

Generally speaking, companies must meet the following baseline conditions

1. Minimum Market Capitalization The total market value of publicly held shares after IPO must be at least $75 million.

2. Public Shareholder Requirement At least 400 public shareholders who own 100 shares or more.

3. Share Price Threshold The post-IPO share price must not fall below $4 per share.

4. Financial Standards Audited financial statements for the past three years are required, along with meeting certain profitability or revenue benchmarks. For example, under the profitability standard, a company must have net income of at least $10 million in the most recent year and $20 million in the prior year.

5. Corporate Governance Requirements An independent board of directors must be established, and the company must comply with NASDAQ’s corporate governance rules.

Additionally, companies must engage qualified underwriters, legal counsel, and accounting firms to form a professional IPO team that will guide them through the entire process.

2. Key Preparations During the Planning Phase

Before deciding to pursue a U.S. listing, companies should conduct a comprehensive self-assessment to ensure they possess the necessary strength and resources to handle complex regulatory environments and disclosure obligations.

First, internal restructuring is essential. This includes streamlining financial management, improving corporate governance structures, and optimizing equity arrangements. Simultaneously, external professionals such as investment banks for underwriting and valuation, law firms for compliance checks, and accounting firms for audits should be engaged.

Second, a detailed business plan and roadshow materials need to be developed to showcase the company's core competitiveness, growth potential, and long-term strategy to prospective investors. This stage often takes considerable time and involves multiple rounds of revision.

Third, companies may also conduct pre-roadshows to gauge investor sentiment, determine an appropriate pricing range, and estimate the scale of financing.

3. Submitting the Application and Undergoing Review

Once preparations are complete, the company can submit Form S-1 to the U.S. Securities and Exchange Commission SEC, officially launching the IPO process. This document is comprehensive and covers everything from the company’s business model and financial data to risk factors and executive information.

The SEC conducts multi-round reviews and provides feedback, which the company must address by submitting additional documentation or making adjustments. This phase can last several months, during which the company must continuously update its financial reports and business developments.

At the same time, NASDAQ independently evaluates whether the company meets its listing standards. If all goes smoothly, the company will receive final approval from NASDAQ and schedule a listing date.

4. Pricing and Issuance The Final Step Toward Becoming a Public Company

After securing both SEC and NASDAQ approvals, the company enters the final pricing and issuance stage. During this period, underwriters work closely with the company to finalize the offering price and manage subscription and allocation of shares.

Typically, newly issued shares begin trading on NASDAQ on the designated IPO date, marking the company’s formal transition into a public entity.

It’s important to note that going public is not the end goal-it’s just the beginning. Companies must continue to fulfill ongoing disclosure obligations, operate transparently, and deliver solid performance to maintain investor confidence and support a healthy stock price.

5. Recent Trends and Case Studies

In 2025, several Asian tech firms successfully listed on NASDAQ, including Deep Vision Technologies DianNexus, a China-based AI chip design company, and ZhiXing Future ZhiXing Future, a provider of new energy vehicle services. These companies had completed multiple funding rounds before going public and were backed by internationally recognized venture capital firms.

Take Deep Vision Technologies as an example the company raised over $500 million across five funding rounds before its IPO. Its initial offering price was set at $18 per share, and the stock closed up nearly 30% on the first day of trading, reflecting strong market confidence in its technology and business model.

These success stories demonstrate that despite fierce competition in the U.S. IPO market, companies with clear strategic positioning, stable profitability, and strong growth potential still stand a good chance of attracting investor interest.

Conclusion

Going public in the U.S. is a challenging yet rewarding path. For companies aiming to expand their global influence, enhance brand value, and unlock capital gains, NASDAQ offers an ideal platform. However, successful listings require thorough preparation, rigorous compliance, and efficient execution.

If you're considering taking your company international, start today by evaluating your readiness, mapping out your listing strategy, and laying the groundwork. Perhaps in the near future, your name will appear on NASDAQ’s iconic electronic ticker screen too.