Direct listing
MarketsDefinition
A public-listing alternative to a traditional IPO. Existing shares simply start trading on the exchange — no new shares are issued, no underwriters, no lockup, no allocation games. Saves the company underwriting fees (3-7% of proceeds) but offers no price-stabilization mechanism.
Used by Spotify (2018), Slack (2019), Coinbase (2021). Best for well-known consumer brands that don't need to raise capital, just provide existing shareholders liquidity.
Used by Spotify (2018), Slack (2019), Coinbase (2021). Best for well-known consumer brands that don't need to raise capital, just provide existing shareholders liquidity.