Expanding WKSI Eligibility Act

This bill changes when a company can be treated as a “well-known seasoned issuer” under federal securities rules. It sets the required market value of a company’s publicly held common stock at $400 million or more, measured the same way as in SEC Form S-3 on the day the law takes effect. The company must still meet the other parts of the SEC’s definition, but with no separate “minimum worldwide market value” requirement in that definition.

It also tells the SEC to publish each year how many applications were withdrawn by companies that asked the SEC to decide they were not “ineligible issuers” in order to meet the well-known seasoned issuer definition. This count is due within 90 days after each calendar year ends.

Key points

• Who is affected: Public companies seeking “well-known seasoned issuer” status under SEC rules.
• What changes: Lowers the stock value threshold to $400,000,000 and removes any separate worldwide market value requirement in the definition; adds an annual SEC report on withdrawn applications tied to this status.
• When: Uses SEC rules as they exist on the date the law is enacted; the SEC report is due 90 days after each calendar year.