[chollida1]

> In a Dutch auction, typically new shares aren’t created, and instead existing investors sell shares. This means that the company doesn’t get any of that cash on it’s balance sheets. This is done when the company is profitable, or has enough cash reserves to become profitable in the near future and the investors then want to get all of that pop by offering those shares directly.

This is wrong. Typically its still the company that sells shares. Infact Dutch auctions vs typical IPO's are orthogonal to who sells shares.

In both case the vast majority of the time its the company selling shares from its float.

[kenneth]

I think GP was thinking of direct listing, like Spotify's, in which the company does not issue new shares and instead the stock is listed on a market and insiders put up their own sell orders to provide initial volume to the market. In this case, there is no lockup and founders, employees, and other insiders can get immediate liquidity.