Surf electric aircraft is preparing for direct listing on the American Stock Exchange

The people, who asked not to be identified because the information remains private, said the company plans to list as soon as next week and begin trading this summer.

Los Angeles-based Surf Air said last year that it had secretly submitted a draft to US regulators in the wake of a failed merger with a “blank check” special purpose acquisition company that would have qualified it to go public for $1.42. Billion dollar. Representatives for Surf Air and Morgan Stanley declined to comment on the company's current plans, which could still change.

Advantages of direct listing

In a direct listing, companies typically do not raise new capital, and existing investors can usually start selling shares on the first day of trading without the closing period restrictions of an IPO. A direct listing can also save bank fees and time spent on an investor roadshow.