Music streaming service Spotify, most recently valued at $US13 billion ($17.6 billion), will be the first major company to carry out a direct listing on the New York Stock Exchange when it goes public later this year or early next year, two sources familiar with the situation said on Friday.
The move would be the biggest test yet for the direct listing process, which for companies willing to list shares without raising capital eliminates the need for a Wall Street bank or broker to underwrite an initial public offering (IPO) along with many associated fees.
If successful, it could change the way companies approach selling shares to the public.
The Swedish technology firm is working with investment banks Morgan Stanley, Goldman Sachs and Allen & Co to advise them on the process, the sources said.
Spotify, the New York Stock Exchange, Morgan Stanley and Goldman declined comment. Allen & Co did not immediately respond to a request for comment.
In a traditional sharemarket float, investment bank underwriters sell new shares of a company to the public at a price they determine based on investor feedback.Advertisement
Source : http://www.smh.com.au/business/markets/spotify-valued-at-176-billion-said-to-launch-direct-listing-on-nyse-20170512-gw42iw.html