The New York Stock Exchange filed an amendment to the Securities and Exchange Commission today to allow more direct listings.
Direct listings Offer companies a more streamlined way to become public and raise capital than traditional IPOs, which entails a lengthy road show process and the participation of underwriters to determine the value and price of shares.
Traditionally, direct listings for raising capital were available to companies only for further increase after they completed the usual process of initial public offering.
NYSE filed an offer with the SEC in December to allow for more direct listings, but this was rejected without public comment.
amendment Offered today provides more detailed information on how the direct listing process will work – with capital raising – according to NYSE Vice Chairman John Tuttle.
“Compared to earlier versions of the application, we made [offer] a very detailed mechanical breakdown of how we will execute this type of transaction, ”he said in an interview with TechCrunch.
Most of this is how new stocks are numbered, valued and valued in a direct listing. Traditional IPOs rely on underwriters – who also charge huge fees – to determine the starting price of stocks, and this can fluctuate dramatically once stocks actually enter the market.
The New York Stock Exchange touts direct listings as a less expensive way to make it public and a way that can lead to less volatile pricing process,
About when the NYSE proposal for a direct listing can be approved (or rejected): “The term depends on the SEC. Their first deadline for any action is Saturday, ”Tuttle said.
Updates to the listing process are just some of the changes that may appear on the New York Stock Exchange. The 228-year-old organization on Wall Street continued to trade virtually through the COVID-19 flash using digital platforms.
A pandemic could cause the NYSE to become in the future not so much the work of an office person as the remote work of a home company, Tuttle. told TechCrunch in April.