Direct Public Offering (DPO)
A Direct Public Offering (DPO), also referred to as a Direct Listing or Direct Placement, is a method of directly offering shares to the public without involving intermediaries such as investment banks, broker-dealers, or underwriters. This approach offers potential cost reductions compared to the more common Initial Public Offering (IPO). DPOs are commonly employed by smaller companies with a loyal customer base, allowing them greater flexibility in allocating capital. Before conducting a DPO, the company must submit compliance documents to regulators in each region where shares will be offered, although registration with the Securities and Exchange Commission (SEC) is often not mandatory.