Arnold & Porter Discusses SEC Approval of NYSE Direct Listings Proposal

The SEC has given the New York Stock Exchange (NYSE) clearance to allow companies to raise capital in connection with a direct listing on the NYSE. A direct listing is an alternative to a traditional underwritten IPO that allows a private company to list its equity securities without an underwritten offering. The NYSE and The Nasdaq Stock Market (Nasdaq) both currently permit companies to directly list shares held by pre-IPO stockholders, such as employees and early stage investors, without an underwritten offering. The NYSE’s rule amendment adds a new type of direct listing that will permit a private company to … Read more