Going Public? IPO v. SPAC v. Direct Listing Quick Reference Guide

With the continued surge in SPAC IPOs and the SEC’s recent approval of rules allowing companies to raise capital via direct listings (a “primary direct listing”), companies thinking about going public can look beyond the traditional IPO process and structures. But, should they? Understanding the distinctions between a SPAC, primary direct listing, and traditional IPO is critical to determining the best choice for your company. This month’s edition of Momentum Minutes is a quick reference guide to the different rules of engagement for these offerings, helping you make this decision with your company’s goals in mind.

This memorandum is a summary for general information and discussion only and may be considered an advertisement for certain purposes. It is not a full analysis of the matters presented, may not be relied upon as legal advice, and does not purport to represent the views of our clients or the Firm. Scott D. Elliott, an O’Melveny partner licensed to practice law in California, Warren T. Lazarow, an O’Melveny partner licensed to practice law in California and New York, Jeeho Lee, an O’Melveny partner licensed to practice law in California and New York, David Makarechian, an O’Melveny partner licensed to practice law in California, William K. Pao, an O’Melveny partner licensed to practice law in California, Amy S. Park, an O’Melveny partner licensed to practice law in California, New York, and New Jersey, Eric Sibbitt, an O’Melveny partner licensed to practice law in California and New York, Viqar Shariff, an O’Melveny counsel licensed to practice law in New York, and Melissa Wright, an O’Melveny counsel licensed to practice law in California and Pennsylvania, contributed to the content of this newsletter. The views expressed in this newsletter are the views of the authors except as otherwise noted.

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