The Securities and Exchange Commission approved a Nasdaq proposal allowing companies to raise capital while also doing direct listings instead of IPOs. Prior to approving a similar proposal from the NYSE in December, the SEC did not allow companies to raise new capital while going through the direct listing process.
Nasdaq initially submitted the proposal in September, but after the SEC expressed concern with it in December, Nasdaq amended the proposal in February, and the SEC approved it in an order, Pensions & Investments reports.
Nasdaq’s proposal allows a company that has not previously had its common equity securities registered with the SEC to list those securities on the Nasdaq Global Select Market upon the effective date of a registration statement. The company itself will sell shares in the opening auction on the first day of trading on the exchange. Read more.
