Bank of America has become a proponent of direct listings. Here's why. - Business Insider

are the only two prominent companies that have done a direct listing in the US, and some IPO experts think only similarly well-known companies can pull one off, but the bankers think the process could be used by a much broader range of startups.You might think investment bankers would be skeptical — or even downright critical — of direct listings, the process Spotify and Slack used to go public instead of holding a traditional initial public offering.

Kell and Kirkham spoke with Business Insider at the bank's Tech Innovation Summit in Silicon Valley's Menlo Park last week. Direct listings were one of the topics du jour at the event, which was attended by venture capitalists and startup founders.Troy Wolverton/Business Insider In a direct listing, by contrast, a company's early investors sell shares directly to the public via the exchange they join. The company itself doesn't raise money in the offering, and its executives don't generally go on a so-called road show to meeting with prospective IPO investors.

But Kell argues direct listing could end up being used by a much wider swath of companies than skeptics expect. While many companies do use a public offering to raise money for themselves, that doesn't have to be done through a traditional IPO, he noted. Companies could sell shares to big investors in a private placement before or after a direct listing. Or they could do what many public companies do all the time — sell shares to the public after they are already listed.

México Últimas Noticias, México Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Bank of America CEO: Warren Buffett tried to call me on a public call center line to talk investment—and couldn't get throughWarren Buffett, chairman of Berkshire Hathaway, has arguably made some of the most notable investment decisions of our lifetime. And one of those decisions was to invest $5 billion into Bank of America in 2011 after the financial crisis. But this important deal hit a remarkably relatable snag early on, according to the bank's CEO. MakeIt Bank of America brought me back from the dead... 😂 MakeIt Eccesentic ! MakeIt It's too bad. The people taking the call should have had a way to escalate that call. The word is selective, not sequestered
Fuente: CNBC - 🏆 12. / 72 Leer más »

Here's why one analyst thinks YouTube could be worth $300 billion as a standalone company, making it more valuable than AT&T, Exxon Mobil, and Bank of AmericaNeedham & Company analyst Laura Martin says owner Alphabet should spin off all or part of Youtube and estimates its revenue at $30 billion this year.
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »