Music streaming service Spotify has filed confidentially with United States regulators for an initial public offering (IPO). According to sources, the company will be targeting a direct listing on the New York Stock Exchange in the first half of 2018.
One possible reason for this is that some long-term investors would benefit from an IPO listing. As a result, they would have the opportunity to cash out on their investment. Initially, The confidential filing was reported by news outlet Axios. The U.S. Securities and Exchange Commission now allows all companies, regardless of revenue, to file a draft IPO registration statement confidentially before they unveil their financials.
If the company goes ahead with its plans, it would be the first major company to carry out a direct listing. This would be an unconventional way to pursue an IPO without raising new capital. A direct listing mainly eliminates the need for a Wall Street bank or broker to underwrite an IPO. It also eliminates any associated fees and could change the way companies approach selling shares to the public.
It has been previously reported that Spotify was aiming to file for an IPO in late 2017.
Continue reading Spotify makes confidential filing for United States IPO at One EDM.
Source: oneedm.com
