Nov 27, 2019

NYSE proposes allowing companies to raise capital in direct listings

Illustration: Lazaro Gamio/Axios

The New York Stock Exchange yesterday laid the formal groundwork for letting companies raise capital as part of direct listings.

Why it matters: This could upend the traditional IPO market, which has relied on Wall Street banks to set pricing terms.

Background: We first discussed the possibility of hybrid listings back in June, in preparation of Slack's direct listing (through which the company itself raised no money). Three months later we broke news on how a group of Silicon Valley investors and attorneys were hosting an invite-only meeting to gain further support for hybrid listings, arguing that the normal IPO process too often benefits bank clients at the expense of issuers.

What's new: NYSE's proposal would let both the company and company insiders sell stock at listing, so long as the company sells at least $250 million worth of shares. There are no new lockup requirements.

  • An exchange spokesperson writes: "This represents the next step in the development of the Direct Listing, which the NYSE pioneered with Spotify in 2018 and Slack earlier this year."

What's next: The filing kicks off a public comment period, after which NYSE's plan will be approved or rejected. The Nasdaq also has said that it's working with the SEC on a direct listing plan.

Go deeper: Creating the perfect IPO

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SEC rejects NYSE plan for direct listings

Illustration: Sarah Grillo/Axios

U.S. securities regulators have rejected an application by the New York Stock Exchange to allow companies to raise capital during direct listings, Axios has learned.

Why it matters: As we wrote earlier, the NYSE proposal could have upended the traditional IPO market, which has relied on Wall Street banks to set pricing terms.

Go deeperArrowDec 6, 2019

NYSE files new direct listings proposal

Photo: Scott Heins/Getty Images

The New York Stock Exchange on Wednesday filed a new proposal with federal regulators, aimed at allowing companies to raise money via direct share listings.

Details: The proposal has slightly different numbers than the original effort, which the SEC rejected last week, but still would help companies go public without relying on Wall Street banks to price their shares.

Go deeper: NYSE proposes allowing companies to raise capital in direct listings

Keep ReadingArrowDec 11, 2019

Saudi Aramco's IPO is huge and limited at the same time

Illustration: Eniola Odetunde/Axios

There's a split-screen effect with the Saudi Aramco IPO: it's simultaneously the largest ever and an event that's less consequential than initially envisioned.

Driving the news: The company yesterday said shares would be priced at 32 riyals, or $8.53, per share on the country's domestic exchange, representing a $1.7 trillion valuation.

Go deeperArrowDec 6, 2019