Website-hosting service Squarespace Inc. has decided to pursue a direct listing this year instead of a traditional initial public offering, according to people familiar with the matter.
The company’s plans, including the timing of a listing, could still change, said the people, who asked not to be identified because the matter is private.
A representative for the New York-based company declined to comment.
Squarespace would be the latest technology company to choose this route to the public markets, following Roblox Corp., Palantir Technologies Inc., Slack Technologies Inc., Spotify SA and Asana Inc. Cryptocurrency exchange Coinbase Global Inc. is set to list via a direct listing on Wednesday.
In a direct listing, the company doesn’t raise fresh capital and existing investors can typically begin selling their shares on the first day of trading without the usual lock-up period restrictions in an IPO. It can save on banking fees and the time spent on an investor roadshow.
Squarespace was valued at US$10 billion last month in a funding round. It said in January it had confidentially submitted a draft filing to go public with the U.S. Securities and Exchange Commission.
Led by founder and Chief Executive Officer Anthony Casalena, Squarespace competes against publicly traded rivals Wix.com Ltd. and GoDaddy Inc., among others.
It’s backed by investors including General Atlantic, Index Ventures and Accel.