Surf Air Works with Morgan Stanley on Direct Listing
Surf Air, a California-based private aviation company, is reportedly working with Morgan Stanley on a direct listing. The move could potentially allow the company to go public without raising additional capital.
Background of Surf Air
Surf Air was founded in 2013 and is based in Santa Monica, California. It is a subscription-based private aviation company that offers members access to a fleet of aircraft. The company has grown rapidly since its inception, and now operates in the United States, Europe, and the Middle East.
Surf Air has raised over $200 million in venture capital funding from investors such as ZhenFund, Raine Ventures, and 8VC. The company has also secured debt financing from Goldman Sachs and Credit Suisse.
Surf Air’s Potential Direct Listing
Surf Air is reportedly working with Morgan Stanley on a direct listing. A direct listing is a process by which a company can go public without raising additional capital.
The direct listing would allow Surf Air to list its shares on a public exchange, such as the Nasdaq or the New York Stock Exchange. This would give the company access to a larger pool of investors and allow it to raise additional capital if needed.
The direct listing could also provide a liquidity event for Surf Air’s existing investors and employees. This could potentially allow them to cash out some of their shares and realize a return on their investment.
Benefits of a Direct Listing
A direct listing has several advantages over a traditional initial public offering (IPO). For one, it is a much faster and less expensive process. Companies can go public in a matter of weeks, rather than months or years.
Additionally, a direct listing does not require the company to issue new shares or dilute existing shareholders. This can be beneficial for companies that are already well-funded and do not need to raise additional capital.
Finally, a direct listing can provide a liquidity event for existing investors and employees. This can be beneficial for companies that have a large number of shareholders, such as Surf Air.
Risks of a Direct Listing
While a direct listing has several advantages, it also carries some risks. For one, the company’s shares may not be as liquid as those of a company that has gone public through a traditional IPO. This could make it difficult for investors to buy and sell shares.
Additionally, a direct listing does not provide the same level of underwriting and investor relations support as an IPO. This could make it more difficult for the company to attract investors and raise additional capital.
Finally, a direct listing does not provide the same level of regulatory oversight as an IPO. This could make it more difficult for the company to comply with securities laws and regulations.
Conclusion
Surf Air is reportedly working with Morgan Stanley on a direct listing. A direct listing could potentially allow the company to go public without raising additional capital. It has several advantages, such as being faster and less expensive than a traditional IPO, but it also carries some risks. Ultimately, the decision to pursue a direct listing will depend on the company’s specific needs and goals.