Coinbase gets initial reference price of $250 from NASDAQ
Coinbase is going public on the stock exchange today, and NASDAQ has set an initial reference price of $250 for the stock
Cryptocurrency exchange Coinbase is getting ready to list on the NASDAQ stock exchange today. NASDAQ has now set Coinbase’s stock at an initial reference price of $250. According to the stock exchange operator, the reference price is established in consultation with Coinbase’s financial advisors and private transactions for the stock.
In its announcement, NASDAQ stated that “As a Direct Listing, COIN will be in a regulatory halt until Nasdaq opens trading pursuant to the procedures described in Rules 4120(c)(8) and (9) and 4753. Because COIN has not had recent sustained trading in a private placement market, Nasdaq is required to determine the price to use for purposes of Rule 4753(a)(3)(A)(iv)(b) and 4753(b)(2)(D)(ii). That reference price is $250.00.”
NASDAQ explained that since this security hasn’t previously traded on any listing market, it has no previous day’s closing price. As such, Regulation SHO Rule 201 will not apply to the security until its second day of trading on NASDAQ, and $250 will serve as the equivalent of the Coinbase ‘IPO’ price (although the exchange isn’t actually listing via an IPO).
The exchange operator added that the reference price is not an offering price, and no one has bought or sold shares at the mentioned price. Coinbase’s opening public price will be set based on buy and sell orders obtained in the opening auction on NASDAQ.
Coinbase is one of the leading cryptocurrency exchanges in the US. Its public listing is one of the most anticipated in the cryptocurrency space due to its status and revenues. Coinbase announced yesterday that it has gifted shares to its employees ahead of today’s hotly-anticipated direct listing on NASDAQ.
A spokesperson for the exchange told CoinDesk that Coinbase gave each of its more than 1,700 employees 100 shares. This is a way of expressing the company’s gratitude, the spokesperson added.
According to Ireland’s Business Post, news of the gifted shares was first delivered to the staff on March 25 during an all-hands meeting. Each employee is expected to rake in $25,000, as each stock will trade at $250. Coinbase is set to trade under the ticker COIN on NASDAQ.
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