Spotify Files for an IPO, Will Begin Trading on NYSE Under the Name SPOT

Spotify, the world's largest music streaming service, has announced its plans for an IPO. The visitor volition begin trading on the New York Stock Exchange under the ticker name "SPOT."

Spotify isn't looking to raise a big amount of capital with this move, and hence, Spotify volition exist offering a direct listing. What that means is, the company's shares can be traded on the open marketplace sooner than with a more conventional IPO.

According to CNBC, Spotify shares traded between $90 and $132.50 so far this year on private markets. So, at the highest evaluation, the visitor could be worth more than than $23.45 billion. However, the visitor has warned that the price of its shares upon its list on the New York Stock Exchange may accept "picayune or no relationship to the historical sales prices of our ordinary shares in private transactions."

The reason Spotify says that is because it'southward initial offering shares will not be underwritten, i.eastward., underwriters will non gear up any price to inform opening trades on the New York Stock Commutation.

In layman terms, expect the beginning day of trading to be wild. People will effort to effigy out whether they should buy or sell Spotify, all past themselves. Additionally, Spotify explained that none of its current shareholders, except Tencent and its affiliates, accept entered into the kind of 180-day contractual lock-up agreements.

In instance you're wondering, these lock-up agreements are ofttimes customary in an underwritten initial public offering. And now without that, anyone tin can sell shares at any time, thereby flooding the market place and negatively affect the public cost of its shares.

In its filing, Spotify said, "We prepare out to reimagine the music industry and to provide a improve style for both artists and consumers to benefit from the digital transformation of the music industry. Spotify was founded on the belief that music is universal and that streaming is a more robust and seamless admission model that benefits both artists and music fans."

With that being said, the company filed paperwork to be listed on the New York Stock Substitution dorsum in December. The company has reportedly pursuing to accomplish this goal with the help of companies like Morgan Stanley, Goldman Sachs, and Allen & Co.

Feels keen to accept the true cat out of the bag. Transparency breeds trust.

— Daniel Ek (@eldsjal) February 28, 2018

Spotify said it would list "as soon as practicable after this registration statement is declared effective." Following the filling, Daniel Ek, the CEO, and Founder of Spotify tweeted, "Feels dandy to take the cat out of the bag. Transparency breeds trust."

Source: https://beebom.com/spotify-files-ipo-nyse-spot/

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