Directly Listed assist and advise companies on direct exchange listings and capital raising:
Directly Listed assist and advise companies on direct exchange listings and capital raising:
Blog Article
Direct NASDAQ and New York Stock Exchange listings and institutional funding:
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Directly Listed assist and advise companies on direct exchange listings and capital raising:
Direct listings have emerged as an attractive alternative to traditional initial public offerings (IPOs) as the financial landscape continues to shift. A straight public listing offers the Company a few appealing advantages.
This method, we believe, has the potential to boost the Company's growth prospects while also providing a variety of benefits to your shareholders and stakeholders.
The traditional IPO process systematically underprices the stock of companies who use it.
From 1980 to 2020, companies going through the traditional IPO process have underpriced their stock by an average of 20% and left a collective $200 billion on the table.
In 2020 alone was even worse with an average of 48% underpricing, and $30 billion left on the table.
Underwriters and investment banks assist in the sale of stock in a company that is going public, they make substantial purchases at a significant discount for their account and their top customers.
However, the shares are often sold by the investment bank at a discount to their genuine value, which has a negative influence on the company's total valuation.
Additionally, using underwriters and selling at a discount extends the time and expense of issuing additional shares for a corporation.
First and foremost, direct public listings allow the Company to gain access to public markets without the requirement for an underwriter or investment bank.
This direct-to-market approach eliminates the need for intermediaries and associated fees, resulting in significant cost reductions.
By avoiding the traditional IPO process, we can avoid the costs and dilution associated with underwriting fees and other IPO-related charges.
A direct listing also allows the Company to set a fair market price for its shares. Rather than depending on valuations set by investment banks and underwriters.
The company shall let the market determine value based on supply and demand dynamics. This transparency may boost investor trust, attract a broader range of shareholders, here and result in a more accurate valuation for the Company.
Another advantage of direct public listings is the enhanced flexibility for current shareholders, like staff and early investors, to sell their shares.
Unlike typical IPOs, which have lock-up periods that limit the sale of shares for a set period of time, a direct listing allows for higher liquidity and the possibility of rapid trading.
This greater flexibility may increase employee satisfaction, promote shareholder diversity, and ultimately fuel the Company’s long-term success.
Furthermore, going public via a direct listing might provide increased visibility and brand awareness.
The media and investor interest produced by such a listing can provide a tremendous platform for exhibiting the Company, unique value proposition, goods, and services.
This additional visibility may entice potential clients, partners, and brilliant individuals to join The Company, enhancing your market position and expanding your development potential.
Finally, a direct public listing demonstrates the Company's dedication to transparency and responsibility. By taking this route, you indicate your desire to share information with your shareholders and the investing public in a transparent manner.
This transparency can help to build confidence, establish relationships, and present the Company’s as a responsible business entity committed to upholding the highest governance and ethical standards.
This alternative model may generate growth, attract a diverse variety of shareholders, and strengthen your position as a market leader by combining cost reductions and fair market pricing with improved flexibility and visibility.
If you are considering an exchange direct listing, I humbly suggest you start a conversation with Directly Listed.
If a company qualifies, I am confident that it will gain substantially from a direct public listing. Thank you for your attention.
Managing Director, Andy Altahawi, info@directlylisted.com, +1 9495292500