NYSE joins Nasdaq in Proposing Minimum Guidelines for SPAC Listings

Highlights of the guidelines include:

• Minimum $250 million in total market capitalization and $200 million in public float at the time of initial listing
• Minimum of 90% of the IPO proceeds be placed in trust
• Business combination must be undertaken within three years

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Nasdaq Proposes Minimum Guidelines for SPAC Listings: Submits Guideline to SEC

Now that Nasdaq and NYSE have had their lunch eaten by AMEX for over a year (55 IPOs have priced on the AMEX since the beginning of 2007 -- think of the lost revenue!), they've decided to jump in the game. In contrast to NYSE's more stringent requirements detailed in a previous post, Nasdaq, its less credible, but more liquid little brother, has proposed the following:

• Gross proceeds from the initial public offering must be deposited in an escrow account maintained by an "insured depository institution,"
• Business combination within 36 months
• Business combination using aggregate cash consideration equaling at least 80% of the value of the escrow account at the time of the initial combination
• Minimum market value of listed securities of $75 million on the Nasdaq Global Market; Minimum market value of listed securities of $50 million on the Nasdaq Capital Market