Today, Coinbase conducts an initial public offering through a direct listing on Nasdaq. Nasdaq has set the reference price of the stock at $250, and the stock will be traded under the stock code COIN. Investors described Coinbase’s public appearance as a “watershed” moment for the crypto industry.
Nasdaq sets Coinbase’s reference price at $250
Investors are eagerly waiting for Coinbase’s initial public offering (IPO). The company chose to go public through a direct listing on Nasdaq, which is different from a traditional IPO.
A notice issued by Nasdaq on Tuesday stated: “It is expected that the Class A common stocks of Coinbase Global Inc. will be listed on the Nasdaq through direct listing under the code name COIN.” Detailed description:
As a direct listing, COIN will be in a regulatory suspension before Nasdaq starts trading in accordance with the procedures described in Rules 4120(c)(8) and (9) and 4753.
Nasdaq explained that its reference price for Coinbase stock is $250 “because COIN has not been continuously traded in the private equity market recently.” According to reports, on a fully diluted basis, this price will make Coinbase the value of Reached about 65.3 billion U.S. dollars. At the same time, the implied valuation of Coinbase on the FTX exchange on Tuesday was close to $150 billion.
Nasdaq further explained that the reference price is not the issue price, and added: “No one buys or sells shares at that price.” It added:
The opening public price will be determined based on the buy and sell orders in the Nasdaq opening auction.
CNBC detailed that this is the first major direct listing transaction of Nasdaq, and pointed out that the reference price reflects recent private equity market transactions and investment bankers’ input. The publication pointed out that in the five important direct listings of the New York Stock Exchange (SSE), Slack, Slack, Palantir, Asana and Roblox on the New York Stock Exchange (NYSE), the opening price was on average about 37 higher than the reference price. %.
Coinbase released its preliminary financial report for the first quarter last week. Its revenue increased ninefold to US$1.8 billion, while its net income jumped from US$32 million in the previous year to between US$730 million and US$800 million.
Many investors see the public listing of Coinbase as a “watershed” moment for the cryptocurrency industry. For example, Wedbush Securities analyst Dan Ives commented that Coinbase’s public market debut is “potentially a watershed event in the crypto industry, and it will become the focus of Wall Street’s attention to gauge investor appetite.” London-based crypto platform Luno CEO Marcus Swanepoel said:
First, it will show the scale of the industry and the degree of growth.
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