Nasdaq asked U.S. regulators today to remove a restriction that limits how much money companies can raise through a direct listing on its exchange, Reuters reports.
The move follows the SEC’s approval of a Nasdaq proposal to allow companies to raise capital in a direct listing as long the shares start trading within the indicated price range set. The listing would be pulled if shares were set to trade outside that range.
Nasdaq asked the SEC to remove any ceiling on how shares trade. A company’s stock would not be allowed to open more than 20% below the lowest price in the price range, but there would be no restriction on how high it can trade.
“Based on conversations with companies and their advisors, Nasdaq believes that there may be a reluctance to use the existing direct listing with a capital raise rules because of concerns about the pricing range limitation,” Nasdaq said in the filing. Read more.
