The New York Stock Exchange (NYSE) is stepping up its efforts to attract more listings by shell companies, known as special acquisition companies (SPACs).
The NYSE announced that the U.S. Securities and Exchange Commission (SEC) has approved rule changes. They're designed to enhance its listing rules and services platform to attract listing by SPACs, which raise capital from investors before acquiring an operating business. The changes modernize the listing requirements, revise the fee structure, and introduce new distribution standards for SPACs, the exchange says.
"Market conditions are now ripe for SPACs after several years of reduced activity. We are excited that our enhanced rules and expanded listings package accommodate a broad range of companies looking to use a SPAC listing to raise capital for their investment," says John Tuttle, global head of listings at the NYSE, in a statement.
The exchange reports that its renewed effort to attract these shell company listings is starting to pay off. It has secured three SPAC listings in the past three months, after nearly 10 years without a new listing by a SPAC.
SPACs can list on the Big Board, NYSE, or the market for small- to mid-cap companies, known as NYSE MKT (which will be renamed, NYSE American on July 24).