The Council of Institutional Investors has petitioned the U.S. Securities and Exchange Commission to hold off on approving the New York Stock Exchange’s plan to let companies raise capital through direct listings rather than initial public offerings.
In an Aug. 31 letter to the SEC, CII said it was giving “written notice of CII’s intent to petition for review of the Order Approving a Proposed Rule Change, as modified by Amendment No. 2, to Amend Chapter One of the Listing Company Manual to Modify the Provisions Relating to Direct Listings; Exchange Act Release No. 89,684, File No. SR-NYSE-2019-67.
The action approving the proposed rule change was made by the Division of Trading and Markets, pursuant to delegated authority on August 26, 2020. CII intends to file separately a petition for review in accordance with Rule 430(b)(2) of the Securities and Exchange Commission’s Rules of Practice.”