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Latham represented Spotify, the world’s largest global music streaming subscription service, in its groundbreaking direct listing, a “first-of-its-kind” transaction.

Direct Listings

Latham is pioneering the increasingly popular direct listing, an alternate method of becoming a public company.

What is a direct listing?

A direct listing is an alternative to an IPO that offers greater liquidity and flexibility to founders, early investors, employees, and other shareholders. A private company’s outstanding shares are listed on a stock exchange such as the NYSE or Nasdaq, without a primary or secondary underwritten offering. The company does not raise capital through the listing. Existing shareholders, such as employees and early-stage investors, are free to sell their shares on the exchange.  

Why choose a direct listing?

A direct listing offers certain advantages to companies looking to go public. In particular, a direct listing is well-suited for companies who have:

  • No immediate need to raise capital
  • A large existing shareholder base

Compared to traditional IPOs, advantages include: 

  • Pure market-driven price discovery
  • Greater liquidity for existing shareholders — no lock-up agreements
  • Equal access to information for all buyers and sellers

Latham’s top-ranked capital markets lawyers worked with regulators to pioneer the first direct listings and continue to lead the developing direct listing market. 

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