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Direct listing

Bringing shares to an exchange without issuing new stock and without a book: existing holders come to the market.

How to read the number

The company raises nothing and pays no placement fee, and the first trade is priced by orders meeting each other rather than by an organiser's negotiation.

When the metric lies

With no organiser there is neither stabilisation nor a selling restriction, so the swings of the first days are usually wider than in a classic placement.

Also known as: direct listing

Related terms