NYSE Revised Rule Change Proposal on Direct Listings

On December 11, 2019, in response to the SEC’s rejection of its initial primary direct listing proposal, the NYSE filed a revised rule change proposal that would allow issuers to sell newly issued primary shares in a direct listing. A direct listing refers to the listing of a privately held company’s stock for trading on a national stock exchange without conducting an underwritten offering, spin-off or transfer quotation from another regulated stock exchange. The proposal would delay, until 90 trading days after the direct listing, the requirement that an issuer have 400 round lot holders at the time of listing.

Additionally, issuers may meet the NYSE’s market value requirement for a primary direct listing by selling $100 million of shares.

The proposal submitted to the SEC by the NYSE can be found here.

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