Coinbase, one of the largest crypto exchanges, has recently announced its plan to go public through a direct listing. The firm announced this on Friday, January 29, 2020, through a blog post. The firm has not revealed its financials yet, and this time it has decided to go public through the direct listing and not through IPO. For quite some time, it has been seen that direct listings have gained huge popularity in the sector.
Coinbase Not the Only One to Opt Direct Listing
As direct listing is gaining huge popularity, Coinbase is not the only one to opt for it. There are other firms as well like Roblox, which have also opted for a direct listing, as there was a delay in the 2020 IPO market. With a direct listing, the firms can skip the elements of a traditional IPO.
As per the analysts, big firms can easily opt for direct listing as compared to the smaller ones. Smaller firms are not able to find this method attractive and hence they become unable to raise new primary capital. As Coinbase comes among the largest crypto exchanges out there, it is believed that this method will prove extremely beneficial for the firm.
Registration With the SEC
Back in December 2020, Coinbase has announced that it has submitted a draft registration with the U.S. SEC for Form S-1. According to the firm, this Form S-1 will become effective, after the commission will complete the review process. The firm has also mentioned in its announcement that it does not have any offer to sell or buy securities. This will be made available only after the fulfillment of registration requirements of the Securities Act of 1933 by the U.S. SEC. Coinbase’s announcement has been made in accordance with Rule 135, under the Securities Act of the U.S. SEC.