Advertisement blocked. I get it, ads suck. However, this website is run by one person and these ads are the only way we can keep publishing. If you like this website, please consider becoming a supporting member to remove the ads or safelist the website in your content blocker, we will not be able to exist otherwise.

Spotify Considers Directly Listing Shares on Public Exchange

The Wall Street Journal:

The Swedish company, last valued at $8.5 billion, is seriously considering not holding a public sale of shares. Instead it is exploring simply listing its shares on an exchange in what is known as a direct listing, according to people familiar with the matter. It wouldn’t raise money—the hallmark of an IPO—or use underwriters to sell the stock.

And:

There are risks to this approach, whose consideration by Spotify was earlier reported by Mergermarket. With market forces determining the share price from the outset, the company’s public debut could be more volatile and unpredictable. Also missing would be the large blocks of stock underwriters typically allocate to investors they believe will hold the shares for the long term and promote trading stability.