NYSE Euronext is proposing rule changes that would allow the listing of acquisition companies on the New York Stock Exchange.

The proposal, filed with and subject to approval by the US Securities and Exchange Commission, will allow these sorts of companies, which are set up to raise IPO capital for subsequent acquisitions or mergers, to list on the NYSE for the first time.

The NYSE currently does not have a financial listing standard that would allow an AC conducting an IPO to list on its market. The proposed rule will require acquisition companies to have at least $250 million in total market capitalization and $200 million in public float at the time of initial listing. It will also impose investor protection and structural safeguards on Acquisition Companies, such as the requirement that a minimum of 90% of the IPO proceeds be placed in trust and a requirement that a business combination be undertaken within three years.

“Acquisition Companies provide opportunities for investors and issuers previously available to professional investors only,” said Noreen Culhane, EVP, Global Corporate Client Group, NYSE Euronext. “After careful marketplace analysis over an extended period of time, we decided that recent changes in sponsorship, scale and deal structure warranted the listing of ACs on the NYSE.”