Alerts

New NYSE Rule Allows SPACs to List on ‘Big Board’

June 18, 2008

In May 2008, the New York Stock Exchange adopted a rule change allowing special purpose acquisition companies, or SPACs, to list on the NYSE. Also known as blank-check companies, SPACs are companies without existing business operations that are formed for the purpose of consummating an acquisition of a to-be-identified business. Previously, the NYSE’s listing rules required companies to have some operating history prior to listing, which disqualified SPACs from doing so.

Prior to the adoption of the NYSE rule change, the American Stock Exchange was the only listing option for domestically traded SPACs. NASDAQ also has filed a proposed rule change that would permit the listing of SPACs on that exchange. The comment period for NASDAQ’s proposed rule change has ended and approval by the SEC is expected shortly.