Spotify may adopt a "direct-to-public" model, valuation expectations exceed $10 billion

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Spotify may adopt a "direct listing" model for IPO at the end of the year. On the evening of April 6, the Wall Street Journal quoted sources familiar with the matter as saying that Swedish streaming music service provider Spotify is considering avoiding the traditional public offering model and adopting a "direct listing" model for IPO (IPO). But people familiar with the matter said that unlike traditional IPOs, Spotify is considering adopting a "direct listing" model for IPO.

Spotify is expected to launch an IPO before the end of this year. But people familiar with the matter said that unlike traditional IPOs, Spotify is considering adopting a "direct listing" model for IPO. If so, this is not an IPO in the true sense of the word.

Original title: Spotify may adopt a "direct listing" model for IPO at the end of the year

. On the evening of April 6, Beijing time, the Wall Street Journal quoted sources familiar with the matter as saying that Swedish streaming music service provider Spotify is considering avoiding the traditional public offering model and adopting a "direct listing" model for IPO (IPO).

The "direct listing" model refers to the direct sale of company shares to the public, rather than reserved for early investors or institutional investors, and there is no need to hire underwriters. This is a very economical listing model and will save significant fees, including fees paid to underwriters.

Under the "direct listing" model, Spotify's offering price is not determined by the underwriting bank, but by market supply and demand conditions. Such an issuance method will provide the public with the smallest investment threshold.

People familiar with the matter said Spotify hopes to value the stock offering at more than $10 billion. Under normal circumstances, companies with valuations far below this figure will choose the "direct issuance" model.

There were reports in July last year that Spotify planned to launch an IPO in the second half of 2017. Spotify has been online for more than 10 years, and as of last year, the company has been losing money every year. In March last year, Spotify raised $1 billion, valuing the company at more than $8 billion.

Editor: Nancy