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Spotify is said to file to go public on NYSE
[LOS ANGELES] Spotify filed confidentially to go public on the New York Stock Exchange, forging ahead with a plan to skip a traditional share sale and list its stock directly, according to a person familiar with the matter.
The world's largest paid music-streaming service sent the documents to the US Securities and Exchange Commission in late December, with the aim of listing its shares in the first quarter of this year, said the person, who asked not to be identified discussing private information. Axios reported the filing earlier Wednesday.
Spotify is getting ready to do an end-run around an initial public offering - the conventional route to listing shares. With a stream of cash from its more than 60 million paying subscribers, the company isn't seeking to raise money like most issuers going public.
A direct listing avoids underwriting fees and restrictions on stock sales by current owners, and doesn't dilute the holdings of executives and investors.
Spotify's equity was valued at US$8.5 billion two years ago when it raised US$526 million. The company would be one of the largest consumer technology providers to go public in recent years.