According to reports, the popular music streaming service Spotify has confidentially filed IPO documents with the Securities and Exchange Commission (SEC) as of late December 2017. It looks as though the company is aiming to list during the first quarter of the year and the timing of the confidential F-1 filing supports this.
The way in which Spotify is going about its IPO is slightly different to how other big tech companies have approached the matter. The firm is going for a direct listing, which means investors have to buy shares through the open market with no predetermined price; in the past, tech companies offered investors shares first which allowed underwriters to set an initial price. Depending on how things go for Spotify, other tech companies could approach IPOs through direct listings too.
It’s believed that the streaming company will be listed on the New York Stock Exchange (NYSE) assisted by Morgan Stanley, Goldman Sachs, and Allen & Co. According to sources, the listing was expected as early as Q4 2017 but now it seems as though Q1 2018 is the most likely time frame for the IPO.
Some analysts have thrown some concern on the IPO following news yesterday which said that Spotify had been sued for $1.6 billion by Wixen Music Publishing over copyright infringement; sources told CNBC, however, that it’s still “business as usual” at Spotify, despite the news.