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Mergermarket: Direct listings attract interest as market awaits primary pioneer

April 05, 2021

O’Melveny partner and former corporate department chair Warren Lazarow provided commentary to Mergermarket for its article detailing the emergence of secondary direct listings following Spotify’s 2018 debut of the move, which cuts investment banks out of the public offering process. While the popularity of secondary direct listings is growing, particularly in the tech sector, a primary direct listing where new capital is raised has yet to debut. 

Direct listings require additional time and effort by companies given they must take on the duties traditionally delegated to investment banks. Even so, for many startups, the pros of directing listings outweigh the cons. In the piece, Lazarow reflected that companies’ confidence in direct listing is boosted when trusted VCs put their weight behind the IPO alternative.

Mergermarket subscribers can read the full article here