United States:
SEC Rejects Initial NYSE Proposal On Capital Raising In Direct Listings
12 December 2019
Jones Day
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On December 6, 2019, the U.S. Securities and Exchange Commission
rejected a proposed New York Stock Exchange ("NYSE") rule
change that would allow companies to raise capital in a direct
listing and, subject to satisfaction of additional valuation
requirements, provide a 90-day grace period for the requirement to
have 400 round lot holders. The NYSE has indicated that it intends
to revise and resubmit the proposal. The Nasdaq Stock Market is
also working on a proposal to permit capital raising in direct
listings. For additional information, see our prior
Commentary on the NYSE proposal.
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