SEC approves Nasdaq rule change to permit direct listings without an IPO
Journal of Investment Compliance
ISSN: 1528-5812
Article publication date: 23 September 2019
Issue publication date: 16 October 2019
Abstract
Purpose
To explain the rule changes in Nasdaq’s new Listing Rule IM-5315-1, approved by the US Securities and Exchange Commission (SEC) on February 15, 2019, that permit direct listings on Nasdaq without an initial public offering, similar to the New York Stock Exchange (NYSE) rule changes approved in 2018.
Design/methodology/approach
Explains the legislative and regulatory background, historic limitations on direct Nasdaq listings, and de-tailed provisions of Nasdaq’s new Listing Rule IM-5315-1.
Findings
The direct listing alternative to an IPO may appeal to cash-rich companies that do not need the publicity or new capital associated with a traditional IPO.
Originality/value
Expert analysis from experienced securities litigation and corporate governance lawyers.
Keywords
Citation
Banks, H.R., Bondi, B.J., Gilman, C.A., Katz, E., Liebmann, G.E., Sturman, R. and Millington, N.S. (2019), "SEC approves Nasdaq rule change to permit direct listings without an IPO", Journal of Investment Compliance, Vol. 20 No. 3, pp. 25-27. https://doi.org/10.1108/JOIC-05-2019-0031
Publisher
:Emerald Publishing Limited
Copyright © 2019, Cahill Gordon & Reindel LLP.