Key to U.S. Company IPO Essential Requirements Steps to Know

The Secrets of U.S. Stock Market Listing Key Requirements and Steps You Need to Know

In recent years, with the increasing connectivity of global capital markets, more and more companies have turned their attention to the U.S. capital market, especially the New York Stock Exchange NYSE and NASDAQ-two of the world’s most influential stock markets. In 2025 alone, multiple Asian tech companies announced plans to list in the U.S., demonstrating the continued appeal of the American stock market to global enterprises.

So, how can a company successfully go public in the U.S.? What key requirements must be met, and what core steps must be followed?

1. Basic Types of U.S. Listings

There are three primary ways to list in the U.S. Initial Public Offering IPO, Reverse Merger, and merger with a Special Purpose Acquisition Company SPAC. Among these, IPO is the most common and formal method.

For example, according to data from the U.S. Securities and Exchange Commission SEC, over 60 companies had completed IPOs in the first half of 2025, raising more than $30 billion in total. Technology, biopharmaceutical, and clean energy firms dominated the listings, indicating that despite economic uncertainties, the U.S. capital market remains vibrant and resilient.

2. Key Pre-Listing Requirements

1. Financial Compliance and Audit Requirements

U.S. securities laws impose high standards of financial transparency on listed companies. Companies must prepare financial reports under either U.S. Generally Accepted Accounting Principles GAAP or International Financial Reporting Standards IFRS, and these reports must be audited by accounting firms registered with the Public Company Accounting Oversight Board PCAOB.

Take the example of a Chinese AI startup in 2025 when preparing for its U.S. IPO, the company began adjusting its financial system two years in advance and hired one of the Big Four accounting firms to ensure compliance with SEC requirements.

2. Corporate Governance Structure

U.S. public companies must establish robust corporate governance structures, including board independence, internal control mechanisms, and independent director systems. Both NASDAQ and NYSE require listed companies to have audit committees, with most members being independent directors.

3. Disclosure Obligations

Public companies must regularly file reports such as the 10-K annual report, 10-Q quarterly report, and 8-K for material events. Timely, accurate, and complete disclosure is a key focus of SEC regulation.

3. Core Steps in the Listing Process

1. Choose Listing Method and Exchange

Companies must choose a listing method and exchange based on their stage of development, financing needs, and strategic goals. For example, NASDAQ is known for its tech companies and offers a relatively flexible review process, while NYSE tends to focus on traditional industries and large enterprises.

2. Hire a Professional Team

The listing process involves various professional institutions, including underwriting investment banks, law firms, accounting firms, and investor relations advisors. Investment banks play a central role in valuation, roadshows, and share issuance.

3. Prepare Registration Documents and Submit for SEC Review

Companies must prepare registration statements-Form F-1 for foreign companies or Form S-1 for U.S. companies-which include business operations, financial condition, management profiles, and risk factors. The SEC conducts multiple rounds of review and provides feedback.

According to feedback from multiple tech companies planning to list in 2025, the SEC has imposed stricter requirements on AI-related companies, particularly regarding business models, data compliance, and intellectual property protection, reflecting a cautious regulatory stance toward emerging industries.

4. Roadshow and Pricing

After SEC approval of the registration documents, the company conducts a roadshow to present its value to potential investors. Then, the company and underwriters determine the final offering price and number of shares issued.

5. Listing and Post-Listing Compliance

Once the stock is officially listed and begins trading, the company becomes a public entity and must continuously comply with SEC and exchange regulations. It must also maintain strong investor relations to build and sustain market confidence.

4. Advantages and Challenges of U.S. Listing

Advantages

The U.S. capital market is vast and highly liquid, offering ample financing opportunities. U.S. investors are particularly receptive to innovative companies, especially in tech and biotech, where valuations often exceed those in other markets.

Challenges

High compliance costs and strict regulatory oversight are major hurdles, especially for non-U.S. companies, which must also navigate cultural differences, language barriers, and cross-border legal issues. In recent years, the SEC has intensified scrutiny of audit working papers from Chinese companies, adding to the uncertainty.

5. Future Trends and Recommendations

In the second half of 2025, as the Federal Reserve’s interest rate hike cycle nears its end, market liquidity is expected to improve. This is likely to encourage more companies to complete their IPOs before year-end. AI, green energy, and biotech sectors will remain key areas of investor interest.

For companies considering a U.S. listing, it is advisable to start compliance preparations early, build a professional team, and closely monitor SEC policy developments. Companies should also focus on strengthening corporate governance and improving the quality of disclosures to enhance investor confidence.

In conclusion, although the U.S. capital market has high entry barriers, its mature institutional framework and active investor base make it a top destination for global companies seeking to list. With thorough preparation and adherence to compliance procedures, companies can maximize their value in this fertile capital market.