Spotify Filing For Direct IPO On NYSE
Spotify is filing for a direct listing of shares on the NYSE, with reports saying is an odd way for a large company to go public.
Reuters says this direct listing means Spotify will list existing shares, owned both by investors and employees without raising new capital or hiring a Wall Street bank or broker to underwrite the offering.
Reports say the company is valued at US$19bn.
In a registration filing at the US Securities and Exchange Commission, Spotify says the opening price of its ordinary shares on the NYSE will be determined through the buy and sell ordered collected on the first day it is listed.
The IPO was on the verge of being nixed after the company was facing a US$2bn lawsuit against Wixen Music Publishing claiming 10,784 of its songs were streamed/downloaded billions of times without being paid compensation.
Spotify is the biggest music streaming service in the world with the service available in more than 60 countries and 71 million users.