Nasdaq Direct Listing Rule Change
On April 3, 2018, Spotify made a big board splash by debuting on the NYSE without an IPO. Instead, Spotify filed a resale registration statement registering the securities already held by its existing shareholders. The process is referred to as a direct listing. As most of those shareholders had invested in Spotify in private offerings, they were rewarded with a true exit strategy and liquidity by becoming the company’s initial public float. On April 26, 2019, Slack Technologies followed suit, filing a resale Form S-1 with an anticipated direct listing on to the NYSE.
Around this time last year, I published a blog on the direct listing process focusing on the differences between a direct listing onto a national exchange and one onto OTC Markets – see HERE. As the process seems to be gaining in popularity, on February 15, 2019 Nasdaq amended its direct listing process rules. This blog is focused on the Nasdaq direct Read More »
