Coinbase IPO: COIN Reference Stock price set at 250 USD by Nasdaq

By: Mark Jessy

April 14, 2021 11:01 PM

Coinbase Initial Public Offering 'IPO' has been scheduled for today by a direct listing on Nasdaq. with the reference price of $250 set by Nasdaq and will be traded under ticker COIN.

Investors have been waiting for Coinbase IPO after the firm decided to go public via a direct listing on Nasdaq. This is different from a common IPO format.

According to a report issued on Tuesday by Nasdaq, which reads:

"The Class A common stock of coinbase Global Inc. Is expected to come on Nasdaq through a Direct Listing using the ticker COIN." Also indicating: 

COIN will be in a regulatory halt until Nasdaq opens trading under the protocols described in Rules 4120(c)(8) and (9) and 4753 when viewed as a direct listing.

Nasdaq clarified that the reference price of $250 given to Coinbase shares was because COIN has not been traded recently in a private placement market. At this price per share, Coinbase is valued around $65.3 billion if fully diluted. Nevertheless, Coinbase suggested valuation was around $150 billion on the FTX exchange.

Although, according to Nasdaq, the reference price is not the offering price, asserting that no shares have been sold or purchased at that price. Nasdaq added:

"Opening price will be assumed based on buy and sell orders in the opening auction on Nasdaq."

According to CNBC, this is Nasdaq's first major direct listing. Also, the reference price reflects recent private trades and inputs from investment bankers.

Coinbase disclosed its initial first-quarter earnings results last week revealing a ninefold revenue increase to $1.8 billion while net income jumped to between $730 million and $800 million from $32 million last year.