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The still relatively small group of companies that have made their debuts on U.S. exchanges through direct listings have, on average, outperformed the S&P 500 and a key broader index for initial public offerings during the same period, according to an analysis by University of Florida finance professor Jay Ritter.
Mr. Ritter calculated that of the 10 direct listings to date, the volatility on the first day of trading measured by the high and low difference in relation to the closing price has been similar to traditional IPOs. He calculated volatility by comparing the average of direct listings to other IPOs he selected based on similar offering dates and tech stocks. “I haven’t heard of a company who has done a direct listing who has expressed regrets about doing it,” said Mr. Ritter.
https://www.wsj.com/articles/direct-listings-have-paid-off-for-investors-so-far-11630315801
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