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:
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How do IPOs work?
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What are the main differences between them?
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Why do companies choose one over the other?
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Are direct listings good for companies?
Let us know what you think:
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Will more companies opt for a direct listing in 2021?
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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?
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Or will the old skool IPO hold strong?
P.S. we wrote an explainer on why you canβt buy freshly IPOβd stocks for a few hours after market open, which also applies to direct listings: Read the blog here.
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