alerts & publications
SEC Rejects NYSE’s Proposed Direct Listing Rules, Precluding Capital Raises Through Direct Listing For NowDecember 9, 2019
On Friday, December 6, 2019, the SEC rejected the NYSE’s proposal to allow companies to raise capital through a direct listing. This proposed rule change was discussed in the December 4, 2019 edition of Momentum Minutes. As of this update, the SEC has not provided an explanation for its rejection, however, this process typically requires multiple rounds of SEC review. An NYSE statement suggests the SEC’s action is not the end of the line for the rule. A spokesperson stated in news reports that “[w]e remain committed to evolving the direct listing product. This sort of action is not unusual in the filing process and we will continue to work with the SEC on this initiative.”
If you have any questions regarding direct listings, contact your Momentum team member.
This memorandum is a summary for general information and discussion only and may be considered an advertisement for certain purposes. It is not a full analysis of the matters presented, may not be relied upon as legal advice, and does not purport to represent the views of our clients or the Firm. The views expressed in this newsletter are the views of the authors except as otherwise noted.
© 2019 O’Melveny & Myers LLP. All Rights Reserved. Portions of this communication may contain attorney advertising. Prior results do not guarantee a similar outcome. Please direct all inquiries regarding New York’s Rules of Professional Conduct to O’Melveny & Myers LLP, Times Square Tower, 7 Times Square, New York, NY, 10036, T: +1 212 326 2000.
Thank you for your interest. Before you communicate with one of our attorneys, please note: Any comments our attorneys share with you are general information and not legal advice. No attorney-client relationship will exist between you or your business and O’Melveny or any of its attorneys unless conflicts have been cleared, our management has given its approval, and an engagement letter has been signed. Meanwhile, you agree: we have no duty to advise you or provide you with legal assistance; you will not divulge any confidences or send any confidential or sensitive information to our attorneys (we are not in a position to keep it confidential and might be required to convey it to our clients); and, you may not use this contact to attempt to disqualify O’Melveny from representing other clients adverse to you or your business. By clicking "accept" you acknowledge receipt and agree to all of the terms of this paragraph and our Disclaimer.