Coinbase Plans to List Trading Through a 'Direct Listing'

Rhythm BlockBeats news, on January 29, Coinbase officially announced that the company plans to list and trade through a direct listing. The announcement states that it "intends to become a publicly traded company pursuant to a proposed direct listing of its Class A common stock. The proposed listing is expected to be conducted pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (SEC). Coinbase will Launch a secondary market for the company's private stock on the Nasdaq Private Market.

According to previous reports, on December 17, 2020, Coinbase Global, Inc. has submitted a draft registration statement on Form S-1 to the SEC, which is expected to become effective after the SEC completes the review process.

A direct listing is understood to be an alternative to an initial public offering (IPO) where a company does not have to work with an investment bank to underwrite the shares being offered .While forgoing the safety net provided by underwriters as a faster and cheaper method of raising capital, the opening price will be entirely dependent on market demand and subject to potential market volatility. Also, a direct listing is not like an IPO An IPO (IPO) is an external capital raising whereby company employees and investors convert their shares into shares which are then listed on a stock exchange.

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