ANALYSIS: New Rules May Help Direct Listings Snack On SPACs

A new NYSE direct listing rule will not eat SPACs’ lunch—but it may snack a bit.

The SEC approved the NYSE’s primary direct listing proposal Dec. 22, and a similar request by the Nasdaq is pending. The changes afford private companies a new option to raise money on public markets without underwriters, in addition to retaining the prior direct listing option to register shares for existing shareholders. The modification removes perhaps the most significant deterrent to choosing a direct listing over an underwritten initial public offering. The substantial cost savings of a direct listing are likely to draw serious ...