Coinbase’s IPO — a direct listing Today
The IPO will be a direct listing (Wednesday April 14th 2021), meaning there are no underwriters setting a target price or book building process which values the stock at a certain price.
The company will simply list its share on the stock exchange. Because there are no underwriters, meaning no one is assuming the risk in connection to reselling the stock shares or performing stabilising transactions, there is the potential for high volatility of the stock price immediately after its listing. [$COIN (Coinbase Global Inc)](file:///markets/coin) will be selling 114 million shares directly to the public according to its SEC filing.
Aside from that, there is no fixed or determined amount of shares that will be for sale as other shareholders may or may not sell their shares.
The company will not be paying dividends on its stock, nor does it plan to pay dividends to shareholders in the future. Coinbase writes that it intends “to retain all available funds and any future earnings for use in the operation of our business and do not anticipate paying any dividends on our capital stock in the foreseeable future.”
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