Morrison & Foerster Discusses Investor Exits: U.S. Direct Listing Rules in Flux

Amid intense focus on investor liquidity (and paths to potential liquidity) in private companies, we provide an update on developments around direct listings as an alternative to traditional IPOs in the United States.

On August 26, 2020, the SEC approved a change in New York Stock Exchange (NYSE) rules that would, for the first time, allow private companies to raise capital through direct listings of their shares on a U.S. market, as opposed to the usual route of underwritten public offerings. (The SEC approval order is here.) To date, direct listings have been available only for sales by the … Read more