The company could be valued between $6.3bn to more than $23bn based on prices shared. There will be no opening share price and no roadshow, rather an ‘investor day’ to educate possible buyers, and the only Spotify owner that must hold shares for three years from the listing date is Tencent. Spotify is well aware of the risks it’s taking, as it explained in a statement to the US Securities and Exchange Commission (SEC): “The public price of our ordinary shares may be more volatile than in an underwritten initial public offering and could, upon listing on the NYSE, decline significantly and rapidly.” This could prove risky for the company, as the traditional management processes carried out by Wall Street institutions is eschewed, creating potential for volatility once it is listed.
Direct listing aheadĪs was previously predicted, Spotify will pursue a direct listing as opposed to a traditional stock market float, meaning no new stocks will be issued, but investors can trade their shares on the open market. In January, Spotify filed paperwork that said it was considering a direct listing in the first half of 2018, something that looks set to occur in the very near future.Īccording to The New York Times, Spotify filed a share sale prospectus for the New York Stock Exchange on 28 February, meaning the world can expect one of the most notable tech firms of recent times to go public rather soon. Rumours around Spotify going public have been floating around for several months now, coming to a head in August 2017 when the company struck a deal with Warner Music. Swedish music streaming giant Spotify makes going public official.
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