Coinbase has made its initial public offering on the Nasdaq official by filing a so-called Form S-1 with the SEC.
The announcement states that the Class A common shares will be offered for sale by existing shareholders and listed on the Nasdaq Global Select market.
Unlike a classic initial public offering (IPO), the sale of shares by existing shareholders is not endorsed by any investment bank, and existing shareholders of the company may choose to sell their Class A common shares at the Nasdaq Global Select Market and whenever they want.
Therefore, this is not a classic issuance of new shares to raise money, but simply a concession to existing shareholders to be able to monetize the shares they own.
Each Class A common share also carries the right to one vote, so those who buy them may exercise this right at shareholders' meetings.
Until now, there was no public market for these shares, which could only be traded in private transactions, while now they will be traded on the Nasdaq.
Coinbase IPO numbers
Some days ago, Was published an extensive leaflet on Coinbase IPO on the Nasdaq website, in order to inform potential buyers about the nature of the company and the placement of its shares on the stock exchange.
The symbol under which Coinbase shares will be traded on the Nasdaq will be COIN, but the exact date of the start of the negotiation is not yet known.
In 2020, the company reported revenue of $ 1.3 billion, with a 25% net profit margin, although half of that occurred in the last four months alone.
In 2018, the total value of the company was valued at $ 8 billion, while recently valuation has risen to around $ 77 billion. The valuation is supposed to be around $ 100 billion at the start of the Nasdaq IPO.
The co-founder and CEO of the company, Brian armstrong, currently owns 21% of Coinbase shares, and if the company's valuation reaches $ 100 billion, his stake would be worth around $ 21 billion.