© Reuters. FILE PHOTO: This image shows representations of Bitcoin and US dollar banknotes in virtual currency
From Echo Wang
NEW YORK (Reuters) – Nasdaq set a reference price of $ 250 per share for Coinbase Global Inc on Tuesday and forecast a value for the largest U.S. cryptocurrency exchange of $ 49.19 billion ahead of its groundbreaking debut on Wednesday.
The reference price is not an offer price for investors to buy shares, but a measure of the performance if the share starts trading on the stock exchange on Wednesday.
Coinbase shares are set to trade under the symbol "COIN". The public opening price is determined by buy and sell orders collected by the Nasdaq from broker-dealers.
The reference price is below the volume-weighted average price of $ 343.58 at which Coinbase shares were privately traded in the first quarter of this year.
If stocks trade at or above the reference price, Coinbase would be worth more than six times the $ 8 billion the company was worth in its last private donation round in 2018.
For comparison: the market capitalization of the parent company Intercontinental Exchange (NYSE 🙂 on the New York Stock Exchange is around 66 billion US dollars.
Coinbase has chosen to go public through a direct listing rather than a traditional IPO. This means the company will not raise funds and existing investors will not be bound by lockdown restrictions on when to dispose of their holdings after the market debut.
The option to go public is far less common than a traditional IPO, but it is becoming increasingly important. Past high profile direct listings included Spotify technology SA (NYSE 🙂 in 2018, Slack Technologies (NYSE 🙂 Inc in 2019, and Roblox Corp in 2021.
Coinbase was founded in 2012 and is one of the most famous cryptocurrency platforms in the world. More than 56 million users trade various virtual coins including Bitcoin, Ethereum and.
hit a record $ 62,741 on Tuesday and expanded its 2021 rally to new heights a day before Coinbase listing.
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