The Long-Term Stock Exchange and IEX Group, Inc. are planning to create an initial public offering experience geared toward a company's long-term growth.
As IEX prepares to launch its own listing business in 2018, the company is teaming up with the Long-Term Stock Exchange to create a listings venue "designed for those private companies looking to go public while making a commitment to long-term value creation," the companies said. Companies listing with LTSE would have to adopt a "tenure voting" system and would not have to disclose quarterly earnings guidance.
The planned category would be separate from IEX's other listing venues. The planned potential venue has been not yet been submitted to the U.S. Securities and Exchange Commission for approval.
The Long-Term Stock Exchange, which is backed primarily by venture capitalists in Silicon Valley, is also still pursuing regulatory approval to operate its own exchange. If the company receives approval, companies listed within the "LTSE Listings on IEX" category will be able to transfer to the Long-Term Stock Exchange.
The agreement underscores private companies' worries around going public, as many founders and executives grow hesitant about investors' short-term interests and shareholder activism.
