Benchmark Capital General Partner Bill Gurley organized a meeting of private companies to advocate the direct listing model over the IPO.
Gurley told CNBC that direct listings provide more open and equal access to shares and ensures market-based pricing. While an IPO may be appealing for a company that wants to raise capital, Gurley said the group discussed late stage capital fundraising options at Tuesday's meeting.
Companies that go public through the more traditional IPO process pay hefty fees to underwriters so that new shares can be created and sold to the public, ideally with a first day pop. Gurley said this process has caused new listings to be increasingly underpriced. With a direct listing, firms can bypass underwriting fees, but no new shares are created.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Peloton’s IPO Is More Overpriced Than Its ProductsPeloton’s suspect accounting and outrageous claims about its total addressable market suggest a WeWork-like perception of reality.
Weiterlesen »
What the Collapse of WeWork’s IPO MeansIntelligencer staffers discuss how the company’s recent struggles fit in with the broader economic picture.
Weiterlesen »
WeWork’s New Leadership Officially Cancels IPO PlansThe move was widely expected after turnover in the company.
Weiterlesen »
WeWork’s New Leadership Officially Cancels IPO PlansThe move was widely expected after turnover in the company.
Weiterlesen »
WeWork’s New Leadership Officially Cancels IPO PlansWeWork has filed to officially withdraw its planned IPO by skleb1234
Weiterlesen »
WeWork withdraws its IPO filing after weeks of corporate dramaAfter weeks of corporate drama, WeWork announces plans to withdraw its initial public offering filing.
Weiterlesen »