Nasdaq proposes at least $25M offer proceeds for China companies

Nasdaq proposes at least $25M offer proceeds for China companies

On September 2, 2025, Nasdaq proposed a new requirement for China-based companies seeking to list on its exchange, mandating a minimum of $25 million in offer proceeds. This move follows the successful initial public offering (IPO) of Eastern International Ltd. (ELOG), a Chinese logistics services provider that raised $6.4 million through the sale of 1.6 million ordinary shares at $4.00 per share [1].

Eastern International, which specializes in domestic and cross-border professional logistics services, completed its IPO on August 28, 2025, and began trading on the Nasdaq Capital Market under the ticker symbol 'ELOG'. The company's subsidiary, Suzhou TC-Link Logistics Co., Ltd., operates in key cities across mainland China, Hong Kong, Southeast Asia, and Central Asia [2].

The IPO structure includes a 15% over-allotment option granted to underwriter Maxim Group LLC, potentially allowing the sale of an additional 240,000 shares within a 45-day window. If exercised in full, this would increase the total capital raised to $7.8 million [1].

The new Nasdaq requirement aims to ensure that companies have sufficient capital to meet their operational and growth needs. This move is particularly relevant for logistics companies, which often require significant capital for infrastructure, technology systems, and working capital to fund operations before collecting customer payments [1].

Inspire Veterinary Partners (IVP), a U.S. pet healthcare services provider, also made headlines recently by regaining compliance with Nasdaq's listing requirements. The company received formal notification from Nasdaq on August 26, 2025, confirming its compliance with Rule 5550(b)(1), which mandates a minimum stockholders' equity of $2.5 million [3].

The new Nasdaq proposal is part of a broader trend of increased regulatory scrutiny and higher listing standards for companies seeking to list on major U.S. exchanges. This move is expected to benefit investors by ensuring that companies have sufficient capital to meet their growth and operational needs.

References:
[1] https://www.stocktitan.net/news/ELOG/eastern-international-ltd-announces-closing-of-6-4-million-initial-xqijcxvk157r.html
[2] https://www.investing.com/news/stock-market-news/eastern-international-completes-64-million-ipo-on-nasdaq-432SI-4217098
[3] https://www.stocktitan.net/news/IVP/inspire-veterinary-partners-regains-compliance-with-nasdaq-listing-l4swlrz6759j.html