1. Direct Listings

1.1. Basic Structure

The direct listing is the quickest and also the cheapest way for firms to go public. It usually involves the following three main steps:

  • The firm prepares the necessary registration statements
  • The firm registers its existing shares
  • Once the firm is listed, existing shareholders can sell shares to new public investors through the exchange.

   

The basic logic of a direct listing can be summarized as follows:

  

Direct Listing Process