A Direct Public Offering (DPO) — sometimes known as a Direct Listing or Direct Placement — is a method of offering shares directly to the public, without an intermediary such as an investment bank, broker-dealer, or underwriter. One potential benefit of this approach is that it can ultimately help cut many of the costs that are typical during the much more common and traditional Initial Public Offering (IPO). DPOs are often used by smaller companies with a loyal client base and are meant to give the firm offering the shares more flexibility for capital allocation. Prior to a DPO, the enterprise must present compliance documents to regulators from each region where it plans to offer shares, but the enterprise often does not need to register with the Securities and Exchange Commission (SEC).
