附近上门

The has approved the 鈥檚 proposal to allow companies to raise capital in a direct listing.

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In a direct listing, a block of shares isn鈥檛 sold to investors at a set price, as it is with a traditional IPO (you can read more about the differences between the two methods of financing here). A traditional IPO is a more expensive process, due to bank underwriting fees, but allows a company to raise capital in the going-public process. Now that鈥檚 changing.

New York Stock Exchange president tweeted that the development was 鈥済reat news for capital markets.鈥澛�

鈥淭his innovation democratizes investor access and provides companies with another path to go public,鈥� she tweeted.聽

Perhaps no one is happier about the news than venture capitalist and noted IPO pricing critic . Gurley has been an advocate for direct listings and has spoken out about the IPO process and stocks being mispriced and surging on their first day of trading, therefore leaving money on the table.聽

鈥淭his is HUGE and will hopefully end 40 years of mispriced IPOs through an old antiquated process that failed to match supply/demand and wasn鈥檛 open to all investors,鈥� Gurley Tuesday.

A wonderful 2020 Xmas present to the founders, employees, & investors at VC-backed startups. SEC just APPROVED the ability to add primary capital (fundraise) to a direct listing. It’s very exciting to see the SEC enable innovation in this way. (more)

鈥� Bill Gurley (@bgurley)

The rule change could mean more direct listings in 2021, which is already shaping up to be a busy year for companies going public. , and are among the companies who have filed public S-1 registration statements, while companies like and have filed confidentially.

Some notable direct listings in recent years include and . This year, both and chose to go public through a direct listing.

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