Nasdaq Increases Scrutiny of Small-Cap IPOs After Big Swings
- Exchange is examining issuers across industries, countries
- Scrutiny adds uncertainty over some in-progress small IPOs
The Nasdaq MarketSite in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Nasdaq Inc. is stepping up scrutiny of initial public offerings by small-cap companies, according to people familiar with the matter, after a series of outsized gains by new listings that quickly evaporated.
The exchange is looking more closely at prospective small-cap issuers across industries and countries, said the people, who asked not to be identified as the information is private. Some companies have put their IPO plans on hold as a result, the people said.