In recent years, a new trend has emerged on the US Nasdaq:
Some companies are bypassing the traditional IPO and opting for a DPO (Direct Public Offering) instead.
If you follow the blockchain, payments, or tech sectors, you’ve likely seen the news:
Taiwan’s OwlTing Group (stock code: OWLS) successfully listed on the US Nasdaq via a DPO in October 2025. This is a rare global case, and even rarer in Asia, causing a stir in the Southeast Asian startup community.
Many friends have asked:
What exactly is a DPO? How is it different from an IPO? Is it a feasible path for companies from Malaysia or China?
This article uses a real case study, simple explanations, and practical analysis to help you understand IPO vs DPO in one read.
01｜Starting with a Real Case: OwlTing’s DPO Listing
In October 2025, the Taiwanese tech company OwlTing (parent company: OBOOK Holdings) announced its listing on the US Nasdaq.
The most special part?
OwlTing didn’t do an IPO, but a DPO – meaning it issued no new shares, used no investment bank underwriters, and went directly to listing and trading.
On the listing day, the share price jumped from a reference price of 10 to an opening price of 68. It later surged to around 90 before settling, with its market capitalization once exceeding USD 7 billion.
This event drew significant attention because:
• It’s very rare for an Asian company to list via DPO.
• OwlTing is a blockchain + payments company, making the case even more notable.
• It proved that companies can list on Nasdaq even without a traditional IPO.
This case is the perfect entry point for understanding DPOs.
02｜What is a DPO?
DPO（Direct Public Offering) = Listing directly on an exchange without issuing new shares or using underwriters.
Think of it this way
An IPO is “Raising Capital + Listing.”
A DPO is “Listing Directly, not necessarily raising capital.”
IPO Process：
Underwriters set price → Roadshow → Issues new shares → Raise capital → List
DPO Process：
No new shares → Existing shares trade directly → List
Price is determined entirely by market forces (leading to higher volatility).
03｜What’s the Difference Between DPO and IPO?
Here’s an easy comparison:
| Item | IPO (Trading Listing) | DPO (Direct Listing) |
| Issues New Shares？ | ✔ Yes, always | ✘ No |
| Raises Capital？ | ✔ Yes, it’s a capital-raising event | ✘ Not necessarily |
| Requires Underwriters？ | ✔ Yes (Investment Banks) | ✘ No |
| Cost | High (Underwriting fees + Roadshow) | Low (Saves underwriting fees) |
| Price Setting | Underwriters | Free market |
| Price Volatility | More stable | Can be more volatile (especially first day) |
| Lock-up Period | Usually yes | Usually no |
| Suitable For | Companies needing capital | Companies wanting to list, not raise funds |
In short:
IPO suits companies that need money.
DPO suits companies that want to be publicly listed but don’t need additional funding.
04｜Why Would a Company Choose a DPO?
Examples like Spotify, Slack, and OwlTing show these main reasons:
01 Doesn’t need cash, just wants to list
Strong cash-flow companies may not want to issue new shares. A DPO fits this need perfectly.
02 Wants to save money, avoid high underwriting fees
Traditional IPO underwriting fees (5–7%) can be very expensive. A DPO avoids this entirely.
03 Wants market-driven pricing, fears undervaluation
Underwriters often price IPOs conservatively.
A DPO lets the market decide — OwlTing’s 10 → 68 jump is a good example.
04 Early shareholders want liquidity, want to avoid the lock-up
DPOs typically have no lock-up period.
This allows founders, employees, and VCs to sell shares earlier.
05｜So, What Are the Drawbacks of a DPO?
Of course, a DPO also has disadvantages:
01 Not suitable for companies needing capital
Since DPOs usually don’t involve issuing new shares, they don’t raise primary capital. They are unsuitable for companies “urgently needing a large amount of funding.”
02 Potentially high share price volatility
With no underwriter stabilization, the price can swing significantly (as OwlTing did). OwllTing’s first-day ride from 10→68→90→50 shows significant swings.
03 Lower liquidity if the company lacks brand recognition
If a company isn’t well-known internationally or its business isn’t easily understood by a global audience, it might face low trading volume and weak market interest.
06｜Is a DPO Suitable for Malaysian Companies?
Answer: Partially — with the right conditions.
✔ More suitable for companies that:
• Have stable cash flow.
• Don’t need immediate funding.
• Operate cross-border operations (e.g., payments, logistics, tech).
• Want a fast international valuation.
• Need liquidity for early shareholders.
Industries that work well:
Blockchain, Digital Payments, Logistics/Supply Chain, Green Energy, Tech/Saas.
✘ Less suitable for companies that:
• Need large capital for expansion.
• Operate mainly locally.
• Cannot meet US SEC compliance standards.
• Lacks global governance experience.
Summary:
Mid-to-large Malaysian tech companies with export or cross-border business are the best candidates for DPO
07｜Is a DPO Suitable for Chinese Companies?
Possible, but the barriers are higher.
✔ Suitable Chinese companies that:
• Have significant international business (e.g., exports, cross-border e-commerce, Saas, payments).
• Are not in heavily regulated sectors within China (e.g., highly restricted financial services).
• Have strong audit capabilities and can meet stringent disclosure requirements.
• Seek fairer overseas valuation.
✘ Less suitable for companies that:
• Operate in sensitive sectors (involving data, certain internet platforms, and finance).
• Primary markets are in China, lacking a global narrative
• Need to raise large amounts of capital.
Some Chinese firms have used similar approaches (direct listing followed by secondary offerings). A DPO is another potential path.
08｜Conclusion: DPO vs. IPO – How to Choose?
Here’s a simple guide to help you decide
✔ If your company needs to raise capital → Choose an IPO
An IPO requires issuing new shares → You get funding
✔ If your company doesn’t need cash but wants to list quickly and save costs → Consider a DPO
It saves money, time, and typically has no lock-up period.
✔ If you are a tech company or have strong cross-border operations → A DPO can be a more flexible path.
This is particularly relevant for Malaysian companies and Chinese companies expanding globally.
✔ OwlTing’s case proves that Asian companies can potentially use a DPO to list directly on Nasdaq.
It shows market-driven pricing is possible without relying on investment bank underwriters.
Final Thought｜DPO isn’t a “Simplified IPO”; it’s more “Market-Driven” Listing Path.
The IPO is the traditional, mainstream route. The DPO is a freer, more flexible, and lower-cost alternative.
Looking ahead to the next 3 years (2026-2029), as capital markets evolve, Asian companies internationalize faster, and regulations potentially become more open to direct listings, the DPO is likely to become a more common choice for some companies.