Nasdaq on Tuesday set a reference price of $250 per share for Coinbase Global Inc. With that share price, the valuation of the US cryptocurrency trading company is $49.19 billion.
Launching Reuters on Wednesday (14/3/2021) the reference price is not an offer price for investors to buy shares, but rather as a benchmark for performance when the shares start trading on the stock exchange on Wednesday local time.
Coinbase shares are listed with the COIN code. The public opening price will be determined by buy and sell orders collected by Nasdaq from broker-dealers.
Reference Price Below Coinbase Average
That reference price is below the volume-weighted average price of US $ 343.58. It’s Coinbase traded privately in the first quarter of this year.
If shares are trading at or above the reference price. Thus, Coinbase will be worth more than six times what the last private fundraising round in 2018 was $8 billion.
Coinbase has chosen to go public via an outright listing. Rather than a traditional initial public offering such as an IPO. This means the company will not raise money from the listing of shares and existing investors are not bound by lockdown restrictions on when they can divest their holdings after their market debut.
Founded in 2012, Coinbase is one of the most well-known cryptocurrency platforms globally and has more than 56 million users who trade a variety of virtual coins, including bitcoin, ethereum, and XRP.