NYSE Withdraws Proposal to Permit Listing Without an IPO



On June 19, 2017, the New York Stock Exchange withdrew its March proposal to allow companies to list on the NYSE without an IPO (aka “self-filing”).

According to David N. Feldman, in a self-filing — “a company seeks for previously issued shares of stock to be registered with the SEC so that they can be publicly resold, and this is the method by which the company goes public. No new money is raised in the process.

Shortly after the NYSE’s proposal, online music provider Spotify said it might consider a self-filing. Spotify had plenty of cash but saw benefits in providing shareholders access to the public markets.

Feldamn says the NYSE did not indicate why it decided to change its mind. He asks “Did they fear the SEC would not approve it for some reason? Did they receive resistance from the investment banking community? One can only speculate.

While this alternative to an IPO will not be available to companies seeking to list on the NYSE, it continues to be a viable path to public trading for companies looking to trade on other exchanges.

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