SEC (Securities and Exchange Commission) has approved a proposal by the New York Stock Exchange (NYSE) to allow companies to raise money through direct listings, the Securities and Exchange Commission (SEC) said on Wednesday.
The move is a major breakthrough for the exchange operator. The NYSE has been pushing for an alternative to traditional initial public offerings (IPO) for companies.
The move will also provide more options for private companies that are interested in listing but are cautious about the role of investment banks in the IPO process.
"We are not trying to replace IPO. We are trying to provide more options for companies and investors looking to enter the public market, "John Tuttle, vice chairman and chief commercial officer of the New York Stock Exchange, said in a telephone interview.
Before that, SEC had allowed companies to list directly without going through IPO financing. Music streaming company Spotify Technology SA was the first major company to go public through a direct listing in 2018.
Nasdaq, the exchange operator, has applied to US regulators for a similar change to allow companies to list directly in the market as an alternative to IPO, Reuters reported earlier this week. (end)
* if you want to refer to the original report, please click and browse *
(compiled by Wang Hongying; revised by Xu Wenyan)
((Hongying.Wang@thomsonreuters.com; 86-10-56692073;)
The move is a major breakthrough for the exchange operator. The NYSE has been pushing for an alternative to traditional initial public offerings (IPO) for companies.
The move will also provide more options for private companies that are interested in listing but are cautious about the role of investment banks in the IPO process.
"We are not trying to replace IPO. We are trying to provide more options for companies and investors looking to enter the public market, "John Tuttle, vice chairman and chief commercial officer of the New York Stock Exchange, said in a telephone interview.
Before that, SEC had allowed companies to list directly without going through IPO financing. Music streaming company Spotify Technology SA was the first major company to go public through a direct listing in 2018.
Nasdaq, the exchange operator, has applied to US regulators for a similar change to allow companies to list directly in the market as an alternative to IPO, Reuters reported earlier this week. (end)
* if you want to refer to the original report, please click and browse *
(compiled by Wang Hongying; revised by Xu Wenyan)
((Hongying.Wang@thomsonreuters.com; 86-10-56692073;)