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Also known as: direct public offering, DPO

Direct Listing

TechnicalFundraising

Definition

Direct Listing: A direct listing is an alternative to a traditional IPO where a company goes public by listing existing shares directly on an exchange without underwriters or raising new capital. It's cheaper than an IPO but foregoes the price discovery and capital raise of traditional offerings.

Example Usage

“Spotify and Coinbase chose direct listings to avoid IPO fees and let the market set their opening price.”

Common Misconceptions

Direct listings are the same as IPOs. There's no new capital raised or underwriter pricing.
Any company can do a direct listing. Companies need existing investor base and market demand.
Direct listings have no lock-ups. Lock-ups can still be negotiated with existing shareholders.

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