Anyway for SMEs go IPO?

i have some clients in china, their net profit per year is likely 5million us dollars. could such sme go IPO at nasdaq? i tried to contact with some IBs, seems don't want to have such small cakes.

5 Comments
 

Reverse takeovers is a common back-door way to get listed without having to go through the whole IPO registration process that takes months to complete.

 

Just my two cents, but reverse mergers bring their own set of headaches. Yeah, you might save a few bucks, but if you want to be viewed as legitimate and not stuck on the Bulletin Board, you're going to have to meet NASDAQ reporting requirements, net capital, etc...

There's a reason that 95% of the reverse merger companies out there are pump-and-dump scams.

 

Agree! I'm not sure what the listing requirements are for NASDAQ but from just reading the OP, it seems like the company won't be able to make it into NASDAQ. So an alternative is to start at OTCBB or Pink Sheets, wait until the company meets all the NASDAQ requirements, and up-list from there. Of course, the success rate of uplisting to NASDAQ is very low (mostly because these companies are fairly weak to begin with), but in the place where I interned, there are a few success stories. It all depends on whether the company's future prospects will be strong. If the company is solid, the risk of it being stuck at OTCBB is fairly low.

Also agree that reverse mergers can be a huge headache. For one, make sure that the shell company you're backing into is clean.

 

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