Spotify reportedly filed to go public confidentially

Looks like its latest legal trouble isn’t stopping Spotify from going public. New report claims Spotify has already filed confidentially to go public and did so with the SEC at the end of the year. It’s been rumoured for a while that the music streaming company wanted to debut for the first quarter of this year and this report just lines up with that. Spotify is said to be taking a more unusual route and would be a “direct listing” instead of being a traditional IPO. It’s said they’re exploring the possibility of listing on the stock market without the fundraising event.

With a direct listing this means everyone gets equal opportunity to buy shares, whether you’re an average investor or one lined to large institutions. This could mean less fees for Spotify and the possibility of higher revenue from selling shares in the long run, at least theoretically. But this could also mean increased volatility and smaller short term returns.

Source: Gizmodo