This post was originally published on this site
https://i-invdn-com.akamaized.net/trkd-images/LYNXMPEG9E1H7_L.jpg
The goal of the test, scheduled for Oct. 17, is to highlight to companies looking to go public how a direct listing will function when new shares are sold and money is raised. (https://
In the four high-profile direct listings done since 2018, including those of music streaming company Spotify Technology (N:SPOT) and data analytics firm Palantir Technologies (N:PLTR), no new funds were raised, as is typical in the case of a traditional IPO.
Shares of Palantir and workplace app Asana (N:ASAN), which also went public through a direct listing, were down about 6% and 13%, respectively, below their debut price, as of Wednesday’s close. Direct listings have enabled existing investors to sell their shares and led to investment banks playing less of a role in deciding the price at which shares are sold. The U.S. Securities and Exchange Commission has approved a proposed rule by the NYSE to allow companies to raise capital through a direct listing. Supporters of the direct listing model have criticized IPOs as chummy deals that allow bankers to allocate the most shares to their top clients.
