Direct Listing21 Aug 2021 01:01
Companies that use direct listing have different goals than those that choose an IPO. In an IPO, companies are trying to raise capital for expansion or funding. On the other hand, companies that use a direct listing are not necessarily seeking capital. Instead, they are looking for the other benefits of being a public company, such as increased liquidity for existing shareholders.
Companies that want to go public through this process should also fit a certain profile. Since no underwriters are selling the stocks, the company itself has to be attractive enough for the market. The rough outline of companies that should use this method includes those that: (1) are consumer-facing with a strong brand identity; (2) have easy to understand business models; (3) are not in need of substantial additional capital.
Didn't like this idea initially but after looking into it, there is the possibility that shareholders could benefit, especially on the opening day. Do you sell now or hold is the big question? I'll be holding as I'm already down, and dropping further would make no odds as Im willing to hold for as long as it takes.