Original title: the New York Stock Exchange plans to make a major adjustment to the "direct listing" model.

Source: TechWeb

News on November twenty _ seventh According to foreign media reports, the New York Stock Exchange (NYSE) submitted a document to the Securities and Exchange Commission (SEC) on the morning of November 26th local time that would allow the company to raise funds through a direct listing. A direct listing refers to a company's listing by selling existing shares held by insiders, employees and investors to the market, rather than by issuing new shares in the traditional way.

Direct listings have become increasingly popular since Spotify began to adopt this approach, allowing employees immediate access to liquidity, removing priority access for bankers and allowing market-driven price discovery. Companies like Spotify that choose to go public directly can bypass financial roadshows and avoid some of the exorbitant fees on Wall Street. However, throughout history, many companies that have gone public directly have been unable to raise new funds in the process.

NYSE's new proposal tries to change that. Specifically, NJJ plans to revise the first chapter of the listed companies Manual, which outlines NYSE's initial listing requirements for companies that complete an IPO or a direct listing. If the amendment is passed, companies listed on NYSE will be allowed to raise money through direct listings.

This hybrid model is likely to attract Silicon Valley tech start-ups in Spotify andSlackAfter the direct listing of these startups, these startups have obviously become more familiar with the road to innovation. Behind these exits, technology industry leaders call direct listings the newest and greatest way to enter the public market. Venture capitalist Bill Gurley in particular encourages companies to consider this approach. Meanwhile, Silicon Valley darling Airbnb, which plans to go public in 2020, is said to be considering a direct listing.

Gurley has complained that bankers are unable to price IPO. He recently hosted an one-day conference on the theme "Direct listing: simpler and better options than IPO". The event was attended by a number of technology industry elites, including Sequoia Capital's Mike Moritz, Spotify Chief Financial Officer Barry McCarthy and so on.

Earlier this year, Gurley said in an interview with the media that he publicly supported a direct listing:

"most people are afraid of strong opposition from the banks, so they are afraid to say it. I am at a stage where I can control the situation in my career. "