IPO Direct Listing vs. Traditional: Pros and Cons for Going Public
The initial public offering (IPO) process and the direct public offering process allow companies to go public and sell shares. Direct listings have grown in popularity following a recent rule change by the SEC. Companies can now raise new capital while selling shares through direct listings.
A direct listing is cheaper than a traditional initial public offering. The big difference is that the direct process doesn’t use intermediaries. A company does not work with an investment bank, broker-dealer or underwriter. This means lower fees and regulations. But what are the benefits? How do they work? Could they become the new standard …read more […]
