Traditionally, biotech companies have listed their initial public offerings on Nasdaq. This is attributed to the cheaper fees, more lenient standards and potential to be included in the Nasdaq Biotechnology Index, reports WSJ.
NYSE will cut the fees for companies with yearly revenue less than $5 million and have a market capitalization of at least $200,000. Companies that meet these standards with receive a 75 percent discount off its annual listing fee.
NYSE will also cap its annual listing fees at $100,000 for three years. Changes are expected to take effect at the beginning of June, WSJ reports.
Comparatively, Nasdaq caps its listing fees at $155,000. While some large companies pay up to $500,000 a year to be on the NYSE, according to the report.
In 2018, 43 of 44 biotech companies that had market capitalizations of $200 million or more chose to be listed with Nasdaq. This trend dates back to 1995. Since then, 95 percent of those listings selected Nasdaq.
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