Jay Ritter

Direct listings expansion creates another go-public option

Now that companies have regulatory approval to raise capital through a direct listing without being limited by tight pricing restrictions, the yet-unused alternative to a traditional initial public offering could find more takers once market conditions improve. 

“The relaxation of the price range removes a major impediment for firms hoping to raise capital with a direct listing,” said Cordell Eminent Scholar Jay Ritter, who studies IPOs and alternative methods of going public.

Read more from Ritter in this story by Law360