This week’s direct listings of Palantir Technologies (NYSE: PLTR) and Asana (NYSE: ASAN) will be a critical test. After the failure of Spotify Technology S.A. and Slack Technologies, Inc., which both listed their shares directly on the New York Stock Exchange and traded poorly, investors want to see deals trade well and to benefit shareholders who buy shares on listing day.
That’s according to IPO Edge Editor-in-Chief John Jannarone, who spoke to Cheddar TV’s Kristen Scholer in an interview Monday. Jannarone argued against the idea that there is a bubble in the IPO market, which has recovered dramatically since the coronavirus pandemic brought it to a halt earlier this year.
Jannarone said that direct listings could become a significant percentage of overall IPOs in 2021, but deals like Palantir and Asana would need to succeed to encourage companies to go down that path. The full interview is here: