Odd Lots This Is The NYSE's Plan To Win More Direct Listings
Nov 9, 2020
John Tuttle, Vice Chairman and Chief Commercial Officer at the New York Stock Exchange, shares his insights on the growing trend of direct listings in public offerings. He explains how these listings offer significant advantages over traditional IPOs, like improved liquidity and investor access. Tuttle discusses the NYSE's strategies to capitalize on this trend and the evolving role of investment banks in these transactions. He also highlights the regulatory frameworks that empower companies to leverage direct listings for capital raises, showcasing the potential shift in the future of going public.
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Direct Listings Benefit Companies Not Needing Capital
- Direct listings offer a route to public markets without raising capital.
- This suits companies with existing funds or those prioritizing market pricing over fundraising.
Benefits and Pioneers of Direct Listings
- Direct listings provide benefits like liquidity and share currency for M&A.
- Companies like Spotify and Slack, with sufficient cash, pioneered this approach.
Evolution of Roadshows
- Roadshows are changing; virtual meetings are now viable.
- Face-to-face interactions still hold value, but virtual roadshows offer efficiency.