Spotify and Slack made a splash when they went public via direct listings rather than underwritten offerings or traditional IPOs. With speculation that AirBnb may follow their lead, numerous companies planning to go public are considering the direct listing option. Understanding the distinctions between a direct listing and traditional IPO is critical to determining the best choice for your company. In this edition of Momentum Minutes, our team takes a deep dive into direct listings and explains how they differ from traditional IPOs. Topics covered include the role of investment banks, lock-up and disclosure requirements, offering road shows, and opening share prices.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
