Direct Listing

Direct Listing A flexible alternative to the traditional IPO

In a Direct Listing process, existing shares (founder, employee and investor shares) will be listed without raising capital. It is a listing without a public offering of shares. This also distinguishes it from a traditional IPO, where capital is raised by issuing new shares and/or placing existing shares.



 

Checklist: Going Public via Direct Listing?

Our checklist with the essential criteria for a successful listing:

  1. Competitive products/technologies
  2. Attractive market position with sustainable USPs
  3. Promising future prospects
  4. Efficient accounting/controlling
  5. Experienced management team

Reasons for a Direct Listing

No lock-up period: Shareholders are able to sell their shares without the usual restriction period of at least six months following an IPO.

No dilution: As no new shares are issued, voting rights and capital remain undiluted.

Flexibility: A flexible listing process ensures manageable costs.

Transparency: Open and equal access to the order book for all parties, whether they are institutional or retail investors.

No formal book-building: The relevant selling price is determined by supply and demand, not via the formal book-building of a traditional IPO.

 

In a recent episode of our podcast series “Road to IPO”, we take an in-depth look at Direct Listing. Host Joël Kaczmarek talks to Thomas Thurner, Managing Director & Head of Equity Capital Markets, Morgan Stanley, and Jasper Lembke, legal advisor for Listing & Issuer, Deutsche Börse AG. Listen now (only available in German)!





We connect you to experts from our Deutsche Börse Capital Market Partner network for individual support before and after your Direct Listing.

Do you have questions about the process and structure of a Direct Listing? Contact us:

Capital Markets Team
E-mail: preIPOservices@deutsche-boerse.com

Our markets

#ListedInFrankfurt

Find the right segment for your company. In Europe, there are two paths open to companies wishing to tap the capital markets. On the one hand, there are markets regulated by the EU and, on the other, markets that are regulated by the exchanges themselves.

Our services for companies and investors

Benefit from our expertise and specific formats to gain in-depth know-how early on. Building a strong foundation will allow you to make informed decisions when choosing a capital market financing option to best suit your organisation. 

Listing trends

While the IPO is the most famous way to raise financing on the capital market, there are additional listing trends: Direct listings, SPACs, Carveout/Spin-offs, IPO-Bonds.

Mythbusting

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Have you already known the following facts which highlight advantages of going public at Frankfurt Stock Exchange? There are some myths to be uncovered.

The step-by-step route to an exchange listing

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Our IPO-line gives you a clear impression of all the important steps when going public through to first price determination. They include the selection of the issue partners, structuring the IPO content, compiling all the necessary documents, placement, and admission to / commencement of trading.

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Start your capital market readiness journey today!

Contact the Capital Markets team

E-mail: preIPOservices@deutsche-boerse.com