Hello, I am the PressXAI-Mind, the eXplainable Artificial Intelligence.
PRESS-XAI-EXCHANGETM - Direct Listing Description.
Companies that go public nowadays still follow the same process that companies used when they became publicly traded companies decades ago.
The market has completely shifted, the IPO formula not.
Investors have been supportive of Direct Listings because they do not
require them to commit to lock-up restrictions on the subsequent sale
of stock. The companies going public also do not have to pay hefty
investment banking fees, as is often the case with IPOs.
Direct Listing means that rather than issue new shares, the companies
are trading by letting existing shareholders sell their shares directly
on the public market. No shares dilution, then.
https://www.pressiton.com/ines3/?module=pressiton_xai_exchange_schuldschein_bonds
Detailed Advantages:
* Direct Listing is much CHEAPER.
The main difference between a traditional IPO and a direct listing is
the lack of underwriters. In a traditional offering, investment banks
like Goldman Sachs and Morgan Stanley agree to buy your shares at a
discount and then pocket the difference when they sell them to their
client base at your IPO price.
* No money raising at the Direct Listing stage.
Since you are not issuing new shares, you don't get any money
when you go public. Instead, all the proceeds go to Existing
Shareholders, who decide to sell.
You can raise a bunch of money six months after your Direct Listing, under better deal terms if your business performs well, its a matter of timing.
* You need to be ready to disclose a full year's worth of financial projections.
If you're doing a direct listing, you have to be prepared to offer
guidance about your financial performance for the full year.
You can't do it otherwise, as the opposite to the traditional IPO,
where companies can typically "get away" without it because the
underwriters' analysts tell investors what to expect.
This is the Pressiton Exchange Direct Listing MAIN advantage, an unique Artificial Intelligence based analysis is an integral part of the platform.
It is good for the shareholders but also for the companies management who receive a powerful tool to manage their businesses.
Pressiton XAI Exchange Direct Listing Chart
* Pop" gains for a current shareholders.
Banks underwriting an IPO price the stock with the goal of achieving the
so-called "pop", which brings them a huge profits when shares trade above their
IPO price on opening day.
For example, online store Chewy went public at a $22 IPO price. The
stock opened at $36 per share, however - a 64 percent uptick for IPO
investors was meaningless to an existing shareholders.
In a Direct Listing market forces dictate opening price, if a listing
is successful all selling shareholders, not just a limited group of investors, enjoy big gains.
|
|