Spotify, Valued At $17.6 Billion, Said To Launch Direct Listing On NYSE

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.

Music streaming in Australia increased by more than 90 per cent past year.
Music streaming in Australia increased by more than 90 per cent past year. Photo: Bloomberg

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.

Ahead of the float, Spotify just struck a licensing deal with Universal Music that could make it more attractive to ...
Ahead of the float, Spotify just struck a licensing deal with Universal Music that could make it more attractive to top-selling artists such as Adele. Photo: Cameron Spencer

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.

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Source : http://www.smh.com.au/business/markets/spotify-valued-at-176-billion-said-to-launch-direct-listing-on-nyse-20170512-gw42iw.html

Spotify, valued at $17.6 billion, said to launch direct listing on NYSE
Spotify, valued at $13 billion, said to be preparing to launch direct listing on NYSE
Spotify, valued at $13 billion, to launch direct listing on NYSE: sources
Spotify, valued at US$13 billion, to launch direct listing on NYSE -sources
Spotify, valued at $13 billion, to launch direct listing on NYSE: sources
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