Multiple Paths to U.S. Listing How to Choose the Best Route for Your Company

Multiple Paths to U.S. Listing How to Choose the Best Option for Your Company

In recent years, as global capital markets continue to integrate, an increasing number of companies have turned their attention to overseas markets-particularly the U.S. capital market. The U.S. stock market attracts businesses from around the world with its high liquidity, mature regulatory system, and strong fundraising capabilities. However, for many companies, going public in the U.S. is not a one-size-fits-all process; multiple pathways exist. Choosing the most suitable listing method based on a company’s specific circumstances has become a critical strategic decision.

I. Main Routes to U.S. Listing

Currently, there are several primary ways for companies to list in the United States Initial Public Offering IPO, Special Purpose Acquisition Company SPAC, Direct Listing, and trading via American Depositary Receipts ADRs on over-the-counter OTC markets. Each method has its own advantages and disadvantages and is best suited for different stages of development and strategic goals.

1. Initial Public Offering IPO

An IPO is the traditional and most common route to going public. In this process, a company hires investment banks as underwriters, conducts roadshows, sets the offering price, issues new shares, and eventually lists on the New York Stock Exchange NYSE or NASDAQ. This approach is ideal for companies that already have a certain scale, profitability, and market recognition.

For example, in 2025, Chinese EV manufacturer NIO successfully raised capital through an IPO in the U.S., becoming a benchmark in the industry. The advantages of an IPO include raising substantial capital, enhancing brand visibility, and facilitating future mergers and acquisitions. However, the process is complex, costly, and requires strict compliance with disclosure requirements set by the U.S. Securities and Exchange Commission SEC.

2. Special Purpose Acquisition Company SPAC

A SPAC is a shell company that raises funds through an IPO with the sole purpose of merging with or acquiring a target business. In recent years, SPACs have gained immense popularity in the U.S. capital markets. According to data from early 2025, SPACs accounted for more than 40% of all U.S. IPOs, becoming a key channel for smalland medium-sized enterprises to go public quickly.

The SPAC route offers a relatively streamlined process, shorter timeline, lower costs, and flexible pricing negotiated between the SPAC and the target company. However, risks also exist, such as limited investor knowledge about the target company, which can lead to market volatility. At the end of 2025, an Asian tech firm successfully listed on NASDAQ via a SPAC merger, drawing significant regional attention.

3. Direct Listing

Direct listing allows existing shareholders to sell shares directly in the public market without issuing new shares or involving underwriters. This method has been adopted by some tech companies in recent years, such as Spotify and Slack, who chose to list directly without raising additional capital.

The benefits of direct listing include saving underwriting fees and avoiding the typical first-day price surge seen in IPOs, allowing the market to more accurately reflect the company's value. However, it lacks a fundraising function and is better suited for companies with sufficient cash flow that do not need immediate financing.

4. American Depositary Receipts ADR or Over-the-Counter Trading OTC

For companies that do not yet meet the standards for listing on a major exchange, they may opt to issue ADRs or trade on OTC markets. An ADR is a certificate issued by a U.S. bank representing shares of a foreign company, making it easier for U.S. investors to trade.

This option has lower entry barriers and is suitable for early-stage companies or those testing the U.S. market. However, ADRs and OTC markets typically offer lower liquidity and looser disclosure requirements, which may result in less attention from institutional investors. In 2025, several emerging-market biotech firms used ADRs for small-scale fundraising in the U.S., gaining experience ahead of potential full listings.

II. How to Choose the Right Path?

When selecting a listing method, companies should consider the following key factors

1. Stage of Development and Financial Condition

Startups or unprofitable companies seeking quick access to capital may be better suited for SPAC or ADR routes. Mature companies with solid profitability, stable cash flows, and high valuations usually benefit more from a traditional IPO.

2. Funding Needs and Time Constraints

If a company urgently needs funds for expansion or debt repayment, a SPAC may be a faster option. If higher market recognition and time availability are priorities, then an IPO is more appropriate.

3. Brand Image and Market Visibility

An IPO often involves extensive roadshows and media exposure, helping to enhance international brand awareness. In contrast, direct listings and SPACs tend to generate less publicity and are better suited for companies prioritizing efficiency over branding.

4. Regulatory Compliance and Disclosure Requirements

Different listing methods come with varying compliance demands. IPOs require comprehensive SEC disclosures and involve complex procedures, while SPACs and ADRs offer greater flexibility. Companies must assess their internal governance and compliance capabilities before deciding.

III. Recent Trends and Case Studies

Since 2025, the U.S. stock market has gradually rebounded, particularly in the technology and clean energy sectors, signaling a revival in IPO activity. According to Bloomberg, U.S. IPO fundraising increased by more than 30% year-over-year during the first half of 2025, with notable participation from tech firms in Asia and Europe.

At the same time, the SPAC market has experienced adjustments. With tighter regulations and more rational investor behavior, SPACs are no longer seen as a universal solution but rather require clear acquisition targets and sound strategic planning. Recently, a Southeast Asian fintech company initially planned to go public via a SPAC but ultimately switched to a traditional IPO due to valuation disagreements and delays in regulatory review.

Although the popularity of direct listings has cooled somewhat, some tech firms still favor this approach. For instance, in mid-2025, an AI-focused startup chose to list directly on NASDAQ to avoid diluting founder equity and retain greater control over pricing.

IV. Conclusion

The U.S. capital market offers a variety of paths for companies to go public, each with distinct advantages and ideal use cases. Before making a decision, companies should thoroughly evaluate their own conditions, strategic goals, and market dynamics. When necessary, consulting with professional advisors can help craft the most suitable listing strategy.

Choosing the right path not only helps achieve fundraising objectives but also lays a solid foundation for long-term growth and success in the global marketplace.