![]() In late December 2020, however, the Securities and Exchange Commission (SEC) changed the rules around direct listings to allow companies to raise cash through direct listings by auctioning new shares along with those of current shareholders looking to sell. ![]() ( WORK) are two notable tech firms that went public through direct listings under the traditional process. Originally scheduled for the holidays, the initial. Direct listings were essentially undertaken for liquidity reasons, as new capital wasn't raised because only existing shares were auctioned on the market. Decem08:31 am EST The Motley Fool -> The company behind the popular Roblox video game platform is planning to go public soon. The NYSE set a reference price of 45 for the Class A common stock on March 9, 2021. There used to be a clear line between direct listings and IPOs. Roblox went public through a direct listing on the New York Stock Exchange. Roblox instead completed another round of private capital raising, meaning retail investors are once again missing out on most of the early growth in a tech company.The company's decision highlights some issues with the IPO process, including the difficulty hitting the right price.Roblox has decided to go with a direct listing rather than its planned IPO due to the pricing issues apparent in the market.
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