Momentum Minutes: Going Public? How to Determine Whether a Direct Listing Is Right for You

November 6, 2019

Spotify and Slack made a splash when they went public via direct listings rather than underwritten offerings or traditional IPOs. With speculation that AirBnb may follow their lead, numerous companies planning to go public are considering the direct listing option. Understanding the distinctions between a direct listing and traditional IPO is critical to determining the best choice for your company. In this edition of Momentum Minutes, our team takes a deep dive into direct listings and explains how they differ from traditional IPOs. Topics covered include the role of investment banks, lock-up and disclosure requirements, offering road shows, and opening share prices.

If you have any questions regarding direct listings, please contact Warren Lazarow, Jeeho Lee, or another Momentum team member.

This memorandum is a summary for general information and discussion only and may be considered an advertisement for certain purposes. It is not a full analysis of the matters presented, may not be relied upon as legal advice, and does not purport to represent the views of our clients or the Firm. Warren Lazarow, an O’Melveny partner licensed to practice law in California and New York, and Jeeho Lee, an O’Melveny partner licensed to practice law in California and New York, contributed to the content of this newsletter. The views expressed in this newsletter are the views of the authors except as otherwise noted.

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