Module III· ECM — IPO ProcessAdvanced
Question

How does a direct listing compare with a standard IPO?

Answer

In a direct listing, existing shares are listed and trade publicly without traditional underwriting or primary capital raise, though structures can vary. There is usually no bookbuilt offering, no traditional allocation, and often no greenshoe. It suits companies with strong brand awareness and no immediate capital need. A standard IPO provides price discovery, capital raising, allocation control, and stabilization.