Yesterday, Coinbase, one of the leading crypto exchanges in the market, reported having received regulatory authorization for its direct listing from the Securities and Exchange Commission (SEC). We tell you the details!
Coinbase shares to trade on Nasdaq
Through a press release it was confirmed that Coinbase’s form S-1, the content of which proposes the listing of the company’s shares on the Nasdaq exchange, was declared as effective by the SEC.
The interesting thing is that the public listing of Coinbase is quite special for several factors. While companies like Roblox and Spotify previously went public through direct listings on the New York Stock Exchange, Coinbase will be Nasdaq’s first major direct listing, according to CNBC.
It is worth remembering that direct listing is a process by which a company can go public by selling existing shares rather than offering new ones. And that is precisely the main difference with an initial public offering (IPO), in which new shares are issued.
In this case, Coinbase reported that it plans to register about 115 million Class A common shares, which will trade under the ticker symbol COIN. Specifically, the shares will be available to trade from April 14 on the exclusive Nasdaq Global Select Market division.
A win for the crypto market
As we previously mentioned, another factor that makes Coinbase’s direct listing such an important milestone is that it marks a historic moment for the crypto community. However, the journey up to this point has not been easy.
In fact, the plans were for Coinbase to go public in March. However, it delayed its plans after paying a fine of USD 6.5 million as part of a settlement with the CFTC.
Other details about Coinbase shares
According to Yahoo Finance, another of the key differences between an IPO and a direct listing is that no shares are sold in advance in the latter. This apparently offers Coinbase more control over the share price.
In fact, if you follow CryptoTrend closely, you will know that last month, Coinbase assured that its shares were traded on the private market at a weighted price of $ 343.58 in the first quarter of 2021 until March 15.
We previously mentioned that Coinbase will offer Class A shares, in this sense it is worth explaining what the letter A implies. In this sense, it is usually used to denote the shares that have greater voting power in the management of the company.
And last but not least, it is relevant to note that the Nasdaq Global Select Market, in which Coinbase will list its shares, is the highest category division on the Nasdaq exchange.