Electric aviation and regional air travel company, Surf Air Mobility, has announced that it expects its shares to commence trading on July 11, marking a significant milestone as the first major direct listing in the United States in months. The company’s shares will be traded on the New York Stock Exchange under the ticker symbol “SRFM,” according to a filing with the Securities and Exchange Commission.
Unlike traditional initial public offerings (IPOs), a direct listing does not involve selling shares in advance. Instead, shareholders have the freedom to directly sell their shares to the public, retaining the proceeds from the sale. The debut stock price will be determined by orders received through the stock exchange.
Direct listings have gained traction as a preferred method for pricing new stocks, as advocates argue it offers a more transparent and efficient approach compared to IPOs. Notable companies like cryptocurrency exchange Coinbase Global and workplace communication software Slack Technologies have successfully gone public through direct listings, with Slack later being acquired by Salesforce.
Surf Air Mobility had initially planned a $1.42 billion deal with a blank-check company to go public. However, the deal was terminated last year due to waning interest in the special purpose acquisition company market. Nonetheless, recent market trends indicate a thawing of the stock listings environment, with several companies experiencing robust market debuts in recent months.