The existing investors, promoters, or even employees can sell their shares to the public, and no new shares are created in this process. This may also be to avoid lock-up agreements. A company opting for this method would not want to dilute existing shares or does not have the resources to pay underwriters. In a direct listing, shares are sold to the public without the help of an underwriter. ![]() This intermediary, known as the underwriter, works with the company throughout the listing process, even deciding the offer price of the shares, helping with regulatory requirements, buying the available stakes from the listed company and selling them to investors via their distribution networks. ![]() In an IPO, new shares of the company are created as required and are underwritten by an intermediary.
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