Monday, May 21, 2012

NYSE Proposes Changes to Listing Standards to Accommodate JOBS Act Emerging Growth Companies

In a filing with the SEC, Release No. 34-66994, the NYSE proposes to amend its listing standards to allow the listing of companies on the basis of two years of reported financial data as permitted under the JOBS Act, which allows emerging growth companies to include two years of audited financial data in their registration statement rather than the normally required three years and does not specifically address exchange listings.

The NYSE proposes to amend the initial financial listing standards in Sections 102.01C and 103.01B of the Listed Company Manual to permit an emerging growth company to meet the applicable standard on the basis of the two years of audited financial data actually reported, rather than the three years of financial data that would otherwise be required. The proposed amendment would only be applicable to emerging growth companies that actually avail themselves of their ability to report only two years of audited financial information. Under the proposed amendments, emerging growth companies would still be required to meet the same aggregate financial requirements, but would be required to do so over a two-year period rather than a three-year period, if they have availed themselves of the JOBS Act provision allowing emerging growth companies to file only two years of audited financial statements.