Coinbase to Go Public With Direct Listing, Not IPO
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San Francisco-based cryptocurrency exchange Coinbase today announced plans to go public via a direct listing.
The company, which first announced plans to become a publicly traded company last month, shared the news in a blog post:
"Coinbase Global, Inc. today announced its intent to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock. Such proposed listing is expected to be pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”)."
Crucially, a direct listing is not an IPO—where an IPO involves creating new shares, direct listings are limited to existing shares.
BREAKING: Coinbase chooses Direct Listing over IPO. Possible key reasons: - Strong market demand/no help needed generating liquidity - No lock-up for early investors (can sell shares immediately) I think early investors see imminent market euphoria...https://t.co/QCEApKA1iN — James Todaro, MD (@JamesTodaroMD) January 28, 2021
Back in December, Coinbase said it submitted a draft of its Form S-1 with the SEC; crypto analysis firm Messari valued the company at $28 billion at the time.
If the regulator approves the filing, Coinbase will become the first publicly tradable cryptocurrency exchange.