IPOs v direct listings, what's the difference?

There have been some big direct listings in the last couple of years, like Spotify, Slack and just this week, Roblox.

But why do companies choose to list directly over a traditional IPO?

In our latest explainer, we dive into the topic of direct listings and IPOs:

  • How do IPOs work?

  • What are the main differences between them?

  • Why do companies choose one over the other?

  • Are direct listings good for companies?

Let us know what you think:

  • Will more companies opt for a direct listing in 2021?

  • Will the NYSE proposal, approved by the SEC, to allow companies to raise capital in a direct listing mean more will do so in future?

  • Or will the old skool IPO hold strong?

P.S. we wrote an explainer on why you can’t buy freshly IPO’d stocks for a few hours after market open, which also applies to direct listings: Read the blog here.


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Really good write-up @sampoullain :raised_hands: