NYSE Proposes to Permit the Listing of Emerging Growth Companies Based on Two Years of Reported Financials | Practical Law

NYSE Proposes to Permit the Listing of Emerging Growth Companies Based on Two Years of Reported Financials | Practical Law

The NYSE issued a proposed rule that would amend Sections 102.01C and 103.01B of its Listed Company Manual to permit the listing of emerging growth companies on the basis of two years rather than three years of audited financial data, as permitted under the JOBS Act.

NYSE Proposes to Permit the Listing of Emerging Growth Companies Based on Two Years of Reported Financials

by PLC Corporate & Securities
Published on 09 May 2012 • USA (National/Federal)
The NYSE issued a proposed rule that would amend Sections 102.01C and 103.01B of its Listed Company Manual to permit the listing of emerging growth companies on the basis of two years rather than three years of audited financial data, as permitted under the JOBS Act.
On May 4, 2012, the NYSE filed a proposed rule change that would amend Sections 102.01C and 103.01B of its Listed Company Manual to permit the listing of emerging growth companies (EGCs) on the basis of two years rather than three years of audited financial data. The purpose of the change is to conform the NYSE's requirements to those of the JOBS Act, which allows EGCs to include only two years of audited financial data in the registration statement used in connection with a first sale of common equity securities. The proposed amendment would only apply to EGCs that take advantage of the ability to provide two years of audited financial data.
To learn more about the IPO process for EGCs, see Practice Note, JOBS Act: On-ramp to the Capital Markets for Emerging Growth Companies Summary.