With a direct listing process (DLP), the business sells shares directly to the public without the help of any intermediaries. It does not involve any underwriters or other intermediaries, there are no new shares issued and there is no lockup period.

Are there lockups in direct listings?

Usually it's just the existing stock. One big difference is that there is no required lockup period. ... In a direct listing, existing shareholders, early investors, the company's founders, the VC firms that backed it, can choose to sell some of their stock or not on day one.

Does a direct offering dilute shares?

This article aims to provide readers with a better understanding of the capital raising or underwriting process, or it does not want to dilute existing shares by issuing new shares to the public. The company sells stocks directly to the public without using any middlemen or brokers.