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SEC approves Nasdaq rule change to permit direct listings without an IPO

Helene R. Banks (New York, New York, USA)
Bradley J. Bondi (New York, New York, USA)
Charles A. Gilman (New York, New York, USA)
Elai Katz (New York, New York, USA)
Geoffrey E. Liebmann (New York, New York, USA)
Ross Sturman (New York, New York, USA)
Nicholas S. Millington (New York, New York, USA)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 23 September 2019

Issue publication date: 16 October 2019




To explain the rule changes in Nasdaq’s new Listing Rule IM-5315-1, approved by the US Securities and Exchange Commission (SEC) on February 15, 2019, that permit direct listings on Nasdaq without an initial public offering, similar to the New York Stock Exchange (NYSE) rule changes approved in 2018.


Explains the legislative and regulatory background, historic limitations on direct Nasdaq listings, and de-tailed provisions of Nasdaq’s new Listing Rule IM-5315-1.


The direct listing alternative to an IPO may appeal to cash-rich companies that do not need the publicity or new capital associated with a traditional IPO.


Expert analysis from experienced securities litigation and corporate governance lawyers.



Banks, H.R., Bondi, B.J., Gilman, C.A., Katz, E., Liebmann, G.E., Sturman, R. and Millington, N.S. (2019), "SEC approves Nasdaq rule change to permit direct listings without an IPO", Journal of Investment Compliance, Vol. 20 No. 3, pp. 25-27.



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Copyright © 2019, Cahill Gordon & Reindel LLP.

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