4 ms·
> regulatory reasons the company can't sell new shares this way So can only direct list for a followup, not for an initial? I'd love to issue 1 million shares
by WrtCdEvrydy 6y ago
> regulatory reasons the company can't sell new shares this way
So can only direct list for a followup, not for an initial?
I'd love to issue 1 million shares and just sell them to the pending buy orders on a market.
- chii 6y agoit'd be easy for the company to commit fraud by doing this. That's why it's disallowed. An IPO which is underwritten by sophisticated investors will be assumed to have done due diligence and thus, less likely to be an act of defraud. Hertz tried to sell more shares during their bankruptcy, and needed to ask the SEC for permission (to which the SEC is pretty much denied it).