Definition
A direct listing allows a company to go public by listing existing shares directly on an exchange without issuing new shares or using underwriters. Existing shareholders can sell immediately. It avoids IPO fees and lockup periods but doesn't raise new capital. Used by Spotify, Slack, and other high-profile companies.
Example
Spotify went public via direct listing, allowing employees and investors to sell shares immediately at market-determined prices.
FAQ
What is Direct Listing?
A way for companies to go public by selling existing shares without underwriters.
Why is Direct Listing important?
Direct Listing helps investors evaluate IPO and make more informed decisions.