|Photo by: Mountainhead via Wikimedia Commons|
Spotify revealed its plan to list its shares on the New York Stock Exchange in the first week of April, allowing the music streaming service company a few weeks to prepare for its debut. This was according to American daily, The Boston Globe.
The Sweden-based company that was founded by Daniel EK is said to deviate from its decades of practice of not raising money for expansion or issuing new shares in its initial public offering. Their previous practice is where their existing stakeholders offered their shares to the investors in the form of direct listing. For the past years, the active private stocks sales of the company also helped them set up a valuation that is more than $20 billion on some of their transactions.
The daily said through their source that Spotify will be spending the next few weeks to meet with their investors. They also hope that they will have a smooth entry in the world’s biggest stock exchange. Typically, banks help companies in establishing their price ranges as they debut their stocks to make sure that the value will not plummet at the start.
Spotify Technology S.A. filed with the SEC its IPO last February 28th, detailing its finances.