At Bowarr, we provide end-to-end solutions for companies looking to go public, ensuring seamless structuring, regulatory compliance, and financial readiness. Our services include corporate restructuring, NASDAQ/NYSE qualification, Reg D/Reg S offerings, bridge financing, and full S-1 registration. We guide you through every step, from due diligence to securing up to $350M in equity credit lines, ensuring a successful market debut and long-term growth.
Direct Listing
We provide end-to-end solutions for companies looking to go public on NASDAQ, ensuring seamless structuring, regulatory compliance, and financial readiness.
Exploring NASDAQ Direct Listings as a Strategic Alternative to Traditional IPOs.
Our approach
What Are The Benefits Of A Direct Listing
Through experienced startup consultants who understand the isolated tasks necessary, a client can rely on a professional to manage a critical step in the early stages and focus on other items that need attention.
Frequently Asked Questions
Some frequently asked questions about NASDAQ Direct Listings that you may have questions about
What is the difference between an IPO & a Direct Listing?
When a company decides to go public, there are typically existing shareholders including founders, employees, and various early stage investors. Both an IPO and a direct listing enable these investors to cash out. However, in an IPO, there is a lock-up period—typically between 90 to 180 days—in which shareholders are restricted from selling outside of the Initial Public Offering. In a direct listing, there are no lock-up restrictions.
What is a Direct Lising with a Capital Raise?
Direct Listing with a capital raise allows a company to go public without the need for an underwriter, which can result in lower costs and a simpler process.
How long will it take to get listed?
This is really dependent on how fast we can move through the stages. Working at maximum speed, this can be achieved within 6 months, but we usually like to advise allowing between 9-12 months.
At what price will the listing start?
The objective is to list at $8 per share, and this would be approved by the SEC at the first stage of the process.
What is the difference from a SPAC?
A SPAC is a shell company with no dedicated operational model except to aim to purchase a company (no target has been identified, nor is this allowed). You only have 2 years to obtain the target, the majority of the shares/equity are held by the sponsors and advisers, so you lose control. Alongside this, the fees are much higher to operate and to actually list (approx. $1.5m), the legislation and rules are a lot more complex, and they are designed essentially for the advisers to make the most money! A direct listing is quite the opposite.
How does the company gain liquidity?
This would either be through credit lines, which currently offer 20% value per share (interest rates around 4%), or through specialist share purchasers who would purchase shares with a 15% discount plus a 4% share premium.