New NYSE Rules for Non-IPO Listings

Harvard Law School Forum on Corporate Governance and Financial Regulation

Michael J. Zeidel Andrew J. Brady Phyllis G. Korff 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.