Spotify Finally Readies an IPO…That’s Not an IPO – WSJ (Apr 6, 2017)
It looks like Spotify may be planning on a direct listing rather than an IPO, which could happen by the end of the year. What that means is that it would simply start listing its shares on the public markets without a formal public offering or opening up new shares for sale. That would presumably meet the IPO requirements in its latest debt agreements without the expense or other overhead associated with a traditional IPO. That, in turn, makes it look like Spotify really doesn’t want to list in traditional fashion but now has little choice but to work towards that goal, with this route as a compromise of sorts. It would presumably provide the needed liquidity for investors who wanted to sell out as well, though without the normal process there would potentially be a lot more uncertain and instability in the share price.
via WSJ
The company, topic, and narrative tags below will take you to other posts with the same tags. The narrative link(s) will also take you to the narrative essay which provides additional context behind the post.
Vote for or share this post
Use the Like button below to vote for this post as one of the most important of the week. The posts voted most important are more likely to be included in the News Roundup podcast episode I do each week. Or use the sharing buttons to share a link to this post to social networks or other services.