A direct listing is a way for companies to list shares on a share market without going through an IPO. In a direct listing, the only shares listed are already owned by the company's founders, financial backers and employees. Unlike IPOs, no new shares are created. Direct listings can cut out middle agents, like underwriters, to save money. A direct listing allows existing investors and employees to sell their shares without new shares being issued and diluting existing shareholders. Without underwriters, there is no safety net. Companies like Palantir (PLTR), Roblox (RBLX), and Coinbase (COIN) have gone public in the US with a direct listing.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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