It’s Official: Spotify Files For An IPO
Earlier today, SPOTIFY filed for an IPO listing on the NEW YORK STOCK EXCHANGE, the NEW YORK TIMES reports. SPOTIFY shares will be traded under the ticker symbol SPOT.
According to its filing, SPOTIFY generated had nearly $5 billion in revenue last year, a 39% increase from 2016. Of its 159 million active users, 71 million pay for subscriptions. Yet the company reported net losses of $1.5 billion last year, up from about $660 million the year before.
The TIMES also reports that SPOTIFY will pursue a direct listing of its shares, where no new stock is issued, but existing investors can trade their shares on the open market. “This method could save the company millions in underwriting fees, but as the prospectus notes, it also comes with risks because there is no traditional ‘road show’ process to guide the pricing of shares.”