NYSE Gets SEC Approval for Direct Listing with Capital Raise (1)

Direct listings are looking more and more like regular initial public offerings.

The U.S. Securities and Exchange Commission approved the New York Stock Exchange’s proposal to allow companies to sell shares to raise capital in a direct listing, according to a decision Wednesday. Under the new rule, the offering, called a primary direct floor listing, will provide an auction price range that indicates the minimum asking price the company would sell shares at.

Unlike a traditional IPO, the new shares won’t be underwritten by banks or allocated to institutional investors the night before listing. They will instead be sold ...