On December 6, 2019, the Securities and Exchange Commission ("SEC") rejected the proposal submitted by the New York Stock Exchange ("NYSE") to allow companies to simultaneously go public through a direct listing and raise cash from public market investors. As we previously blogged, the NYSE's proposed rule would have incorporated an option to raise capital into the existing direct listing alternative. The SEC did not provide a public comment on its rejection of the NYSE's proposal. However, following the rejection, the NYSE released a statement that it expects to continue to work with the SEC on the initiative. Separately, on December 3, 2019, the SEC extended the ability of companies to consummate direct listings (without raising additional capital) on The Nasdaq Global Market and The Nasdaq Capital Market.

Visit us at mayerbrown.com

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2019. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.