New NYSE Rules for Non-IPO Listings

Harvard Law School Forum on Corporate Governance and Financial Regulation

Michael J. Zeidel Andrew J. Brady Ryan J. Adams

On February 2, 2018, the SEC approved a proposal to permit, with certain conditions, qualifying private companies to use “direct listings” to list their shares on the NYSE. Direct listings may be an attractive alternative to a traditional IPO for companies that do not need to raise public capital but wish to provide greater liquidity for existing shareholders or make their shares more attractive for M&A activity.