Market history · New issues ·
Coinbase lists directly on Nasdaq
Coinbase, the cryptocurrency exchange, listed on Nasdaq on 14 April 2021 through a direct listing, in which existing shares trade without a company selling new ones through underwriters. An exchange-set reference price of $250 was used to open trading, CNBC and Payments Dive reported, and the shares opened far higher, valuing the company at around $100 billion by some measures.
The listing came at the peak of the 2021 enthusiasm for digital assets, and it was timed with bitcoin near its then-record. Coinbase's shares later fell sharply as crypto prices fell in 2022.
A direct listing differs from an IPO in that the first price is found by the market on the day, which can produce a wide range of outcomes.
The takeaway
In a direct listing, the opening price is set by the market on the day. The reference price is only a starting point.
Sources
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