Spotify Files To Go Public (bloomberg.com)

According to Bloomberg, Spotify filed to go public on the New York Stock Exchange, "in the highest-profile test yet of a technique that lets companies list shares without raising money through a traditional stock offering." From the report: With steady cash from more than 60 million paying subscribers, the world's largest paid music-streaming service doesn't need more funding. Instead of an initial public offering, it's trying a direct listing, which essentially lets private stakeholders start trading their shares on a public exchange. That avoids underwriting fees and restrictions on stock sales by current owners, and doesn't dilute the holdings of executives and investors. Spotify, which has been valued at about $15 billion, would be the most prominent company by far to attempt a direct listing, a method that until now has been used by small issuers and real estate investment trusts. It would also be a first for the New York Stock Exchange, which has sought permission from the Securities & Exchange Commission to change its rules for the occasion.

Comments

IPOs

[Anonymous Coward]

People getting rich off it are underwriters and market insiders. You have to be dreaming if you think regular investors can buy at the original IPO valuation. Commendable of Spotify to do this but I suspect the real motives were to but not dilute the stakes by the current owners.