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NYSE Euronext (NYX) today proposed rule changes to allow the listing of Acquisition Companies (ACs) on the New York Stock Exchange (NYSE). The proposal, filed with and subject to approval by the U.S. Securities and Exchange Commission, will allow ACs – companies set up to raise IPO capital for subsequent acquisitions or mergers - to list on the NYSE for the first time.
"Acquisition Companies provide opportunities for investors and issuers previously available to professional investors only,” said Noreen M. Culhane, EVP, Global Corporate Client Group, NYSE Euronext. “After careful marketplace analysis over an extended period of time, we decided that recent changes in sponsorship, scale and deal structure warranted the listing of ACs on the NYSE.”
NYSE Euronext, on its European markets, has already enjoyed considerable success with listing special purpose acquisition companies. On Feb. 6, Liberty International Acquisition Company, a special purpose acquisition company (SPAC) successfully listed on NYSE Euronext's Amsterdam market, raising a total of EUR 600 mln ($877.6 million) in new capital. Liberty International Acquisition Company was the second special purpose acquisition company (SPAC) listing on NYSE Euronext’s Amsterdam market, after the successful listing of PEHAC in 2007.
The NYSE currently does not have a financial listing standard that would allow an AC conducting an IPO to list on its market. The rule will impose Acquisition Companies to have at least $250 million in total market capitalization and $200 million in public float at the time of initial listing. The rule will impose investor protection and structural safeguards on Acquisition Companies, such as the requirement that a minimum of 90% of the IPO proceeds be placed in trust and a requirement that a business combination be undertaken within three years based upon a favorable vote of a majority of the publicly-held shares, subject to a right of dissenting shareholders to request redemption.
For a copy of the rule filing, please go to: SR-NYSE-2008-17
About NYSE Euronext
NYSE Euronext (NYX) operates the world’s leading and most liquid exchange group, and seeks to provide the highest levels of quality, customer choice and innovation. Its family of exchanges, located in six countries, include the New York Stock Exchange, the world's largest cash equities market; Euronext, the Eurozone's largest cash equities market; Liffe, Europe's leading derivatives exchange by value of trading; and NYSE Arca Options, one of the fastest growing U.S. options trading platforms. NYSE Euronext offers a diverse array of financial products and services for issuers, investors and financial institutions in cash equities, options and derivatives, ETFs, bonds, market data, and commercial technology solutions. NYSE Euronext's nearly 4,000 listed companies represent a combined $30.5 trillion/€20.9 trillion in total global market capitalization (as of Dec. 31, 2007 ), more than four times that of any other exchange group. NYSE Euronext's equity exchanges transact an average daily trading value of approximately $141 billion/€103 billion (as of Dec. 31, 2007 ), which represents more than one-third of the world's cash equities trading. NYSE Euronext is part of the S&P 500 index and the only exchange operator in the S&P 100 index. For more information, please visit www.nyx.com.
