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Coinbase did not disclose when it expects to launch the initial public offering or how much it would seek to raise.
Seemanta Dutta/Dreamstime.com
Coinbase Global said Thursday it would go public using a direct listing instead of a traditional initial public offering.
Coinbase did not disclose when it expects to launch the initial public offering or how much it would seek to raise. In December, the San Francisco-based company said it had filed confidentially with the Securities and Exchange Commission for an IPO. At the time, It didn’t reveal how it would tap the public equity markets. Coinbase declined to comment.
Direct listings, which are different from traditional IPOs, aim to level the playing field for investors and give companies another path to going public. In December, the SEC approved a rule change from the New York Stock Exchange to allow direct floor listings. Companies that use direct floor listings sell new shares and raise fresh capital in a single large transaction directly on the exchange without underwriters. This is different from traditional IPOs where companies sell shares to investors the night before the IPO.
The IPO is slated to come during a rousing time for new issues. January is on track to be the biggest opening month for new stocks in over 20 years.
Coinbase is the latest company to opt for a direct listing instead of a traditional IPO. Roblox, the gaming platform, said earlier this month it would use a direct listing to go public.
Palantir Technologies
(ticker: PLTR) and
Asana
(ASAN) both used the method to go public during the fall of 2020.
Slack Technologies
(WORK) went public using a direct listing in April 2019, while
Spotify Technology
(SPOT) also used the method in 2018.
Founded in 2012, Coinbase is the largest U.S. cryptocurrency exchange with more than 43 million verified users in more than 100 countries. It employs over 1,200 people. Its online platform allows users to buy, sell, transfer and store digital currency. The company has raised $537.4 million in funding, according to Crunchbase. Its last round, which raised $300 million in 2018, valued Coinbase at $8 billion. Investors include Andreessen Horowitz, Tiger Global, IVP, and Ribbit Capital.