Editor’s Note: Quantum computing IPOs are soaring 187%, 413% and even 1,332%. The next quantum security company is preparing to open a final Pre-IPO financing – before going public on Nasdaq or the NYSE. |
Go here to claim your Pre-IPO shares. |
The SEC just shut off a spigot that cost regular investors billions. |
I'm talking about the wave of tiny foreign IPOs — microcaps — that flooded U.S. exchanges over the past few years. This year that flood has slowed to a trickle, and it's worth understanding why. |
Only 13 microcaps have gone public on the Nasdaq and NYSE so far in 2026. By this point last year, the count was nearly 80. Just two of this year's newcomers came from Asia — down from roughly 100 Asia-based tiny companies that debuted in 2025. |
Add it all up and this year's microcaps raised under $300 million combined. Last year, nearly 140 of them raised $1.6 billion. |
Have you heard about the next quantum Pre-IPO? Here’s a link to invest before IPO day. |
So, what happened? |
A lot of those 2025 deals turned out to be pump-and-dump schemes. The playbook goes like this: insiders buy a stake in a tiny company, hype the stock through WhatsApp groups, chatrooms, and social media, drive the price up, then dump their shares — leaving everyone else with big losses. |
A Bloomberg analysis in January found evidence that social-media promotions and subsequent crashes hit a quarter of the smallest companies that listed on the Nasdaq since 2023. Most were based in Asia. |
The response came from three directions. |
The SEC formed a cross-border task force to target overseas manipulation and suspended trading in more than a dozen foreign stocks. FINRA started probing the broker-dealers taking these companies public. And Nasdaq added rules in December giving it discretion to reject listings that look suspicious — even when a company technically qualifies. |
One securities lawyer summed up the new approach: the exchange can now say no if it doesn't like the look of a deal. |
Nasdaq is also raising the bar specifically for China- and Hong Kong-based companies, including bigger minimum raises. One Nasdaq analysis found that 143 of 151 China-based companies that listed between 2022 and 2025 wouldn't have qualified under the stricter rules. |
Here's the key lesson. |
When you see a tiny, recently-listed company with thin financials, a heavy social-media push, and a stock that's already moved dramatically, that's exactly the profile regulators spent the last year cleaning up. |
The irony is that 2026 has been a banner year for IPOs in terms of fundraising. We have SpaceX's record debut and a potential upcoming listing for Anthropic. It's the bottom of the market, the shady microcap corner, that seems to be ripe for scams. |
The regulatory cleanup is a net positive for individual investors. |
Have you been following the quantum computing breakthrough? |
I’m investing in a new quantum computing security company. It could be critical to securing banks, digital assets, medical records, and our nation’s infrastructure and defense systems from quantum computing threats. |
The company is preparing to raise a FINAL round of funding – before the IPO. |
Go here to get Pre-IPO instructions. |
Ian Wyatt
Editor, IPO Watch |
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