Companies pursuing a direct listing on the NYSE will now be able to raise money in the process, PitchBook reports. The SEC gave the exchange the green light to host a modified process that allows companies to sell shares directly to public investors rather than relying on banks and their institutional investor connections.
The new option had been under SEC review for more than a year. Read more.
The Nasdaq has also asked the SEC to give it similar flexibility with direct listing companies seeking to raise capital.
In related news, Bloomberg notes that the SEC’s decision means hot tech companies and other startups will soon be allowed to raise money on the NYSE without paying big underwriting fees to Wall Street banks. The change threatens to upend how IPOs have been conducted for decades. Read more.
