Spotify have as recently as the end of December filed for an IPO via a ‘Direct Listing’ this is a very smart move by the Swedish company. This is an alternative route to Snapchats IPO, and regular WallStreet ‘rules’. As there is no public furore leading up to the listing. Thus allowing execs to pitch their buisness to analysts and other suitable and potential investors. Better yet there are no fees to Wall Street underwriters. (As they would price a company’s shares before trading.)
A major difference between Snap Inc’s IPO and Spotify’s ‘Direct Listing’ is because Spotify have a LOT of money. (With over 60M paid subscribers they can afford to) So raising more money isn’t directly in Spotify’s interest.
Instead, they’re offering employees to cash out (at a current private valuation) and sell their shares to new investors!
To listen to the guys chatting about this please click here!