Tomorrow, April 14th, 2021, Coinbase is scheduled to launch its “IPO” on the Nasdaq.
However, this is not a true Initial Public Offering (IPO), because the company is not offering its shares for sale at a certain price.
Therefore, there is not even a placement price: it will simply allow those who already own shares to sell them.
Coinbase on the stock market without an IPO
It will thus be limited to the secondary market, while there is no news so far of a possible new issuance of shares on the primary market.
Hence, it will be a direct listing without issuing new shares, but merely opening up the possibility of selling and buying existing shares to the public.
The aim is not to raise funds, but to become a listed company and give shareholders the opportunity to monetize their shares.
In this way, Coinbase will be the first real US crypto company to be listed on a stock exchange.
However, the shares will not be available when the exchange opens at 9:30 AM EST, but more likely in the middle of the day or in the afternoon, as the shareholders have to put them up for sale.
For the same reason, it is not yet known what the initial sale price will be, although some estimates suggest a price of around $400. The final opening price could be determined late in the evening, or even as late as Wednesday when the first actual trade takes place.
Being listed on the Nasdaq, Coinbase shares can be bought in exactly the same way as Apple or Tesla shares, i.e. through a brokerage firm.
Coinbase shares will be listed on the NASDAQ under the ticker COIN, and they do not pay dividends, as the company is still in a growth phase, and currently does not pay dividends. It might pay dividends in the future, though it seems unlikely that it will do so in the next few years.
The fact that there may not be many shares for sale tomorrow, while demand may be strong, suggests that their price may well rise above the estimated $400 initial price. The market will then in fact regulate the offer, depending on the price reached.
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