Nasdaq sets initial reference price for Coinbase's stock at $250
April 13, 2021, 5:10PM EDT
1 min read
Coinbase's stock has been given a reference price of $250 ahead of Wednesday's direct listing on the Nasdaq stock exchange.
The reference price is established in consultation with financial advisors with the listing firm as well as private transactions for that stock. In this case, $COIN was pegged to the $250 mark for its Nasdaq debut.
"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."
In the notice, Nasdaq stressed that the reference price is distinct from whatever price $COIN may open at when it begins trading.
"Please note that the reference price is NOT an offering price and nobody has purchased or sold shares at that price. The opening public price will be determined based on buy and sell orders in the opening auction on Nasdaq," the notice stated.