I'm not sure why more companies don't choose to go the direct listing route (like Spotify). Set a reference price, but allow the employees and market decide.

I'm not sure why more companies don't choose to go the direct listing route (like Spotify). Set a reference price, but allow the employees and market decide. Tech companies especially have enough employees that own shares and want to sell that liquidity should not be a big issue. This allows the price to be tested while slowly adding volume (as price stabilizes, more employees willing to sell).