As per previous announcements, the highly anticipated ZipRecruiter IPO is creating a lot of buzz in the market. Indeed, this deal is likely to be a focal point for investors this week. Amid rather volatile starts to other IPOs of late, this offering is likely to generate a lot of attention.
ZipRecruiter is set to be the latest in a string of direct listings. Direct listings provide net proceeds from the sale of existing stock. Unlike traditional IPOs where new shares are issued, investors don’t get diluted from a direct listing.
Additionally, this listing process tends to be faster and involve less in the way of fees. In addition to SPACs, direct listings have become a more commonplace listing vehicle.
Given the amount of investor interest around ZipRecruiter’s upcoming IPO, let’s dive into some of the details for interested investors.
What to Know About the Upcoming ZipRecruiter IPO
According to the company’s recent prospectus filing, ZipRecruiter is set to trade publicly on or about May 26.
ZipRecruiter’s online employment marketplace is one that has received more attention as a result of the pandemic. That said, the company did report a revenue drop of nearly 3% this past year, according to the its prospectus.
The company plans on listing up to 86.6 million shares of Class A common stock. This stock is expected to be issued at $25.04 per share. Additionally, ZipRecruiter is expected to be listed the New York Stock Exchange under the ticker ZIP.
Other companies that have gone public via the direct listing route of late include Coinbase (NASDAQ:COIN) and Roblox (NYSE:RBLX). A number of high-profile tech companies are choosing direct listings for the aforementioned reasons. Getting access to public markets sooner, given how hot the market continues to be (though it has cooled substantially of late), ensures companies don’t miss the boat on the ability to raise capital at heightened valuations.
How the market ultimately views this offering remains to be seen. This will certainly be an intriguing IPO to keep an eye on this week.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.