Spotify is finally set to make its debut in India

Gladys Abbott
March 16, 2018

A Spotify spokesman later confirmed the IPO date.

Spotify is to make its NY stock market debut on 3 April in an unusual direct listing which will see it eschew the usual fanfare associated with big Wall Street flotations. As a result, Spotify said in its filing that "the trading volume and price of our ordinary shares may be more volatile". This is typical for any company that's about to go public - after all, it wants to generate interest in its shares. "There's no reason to dilute our existing shareholders to raise money we don't need".

"By introducing an all-you-can-eat utility service for a fixed monthly subscription, Spotify offered a clear consumer value proposition that unlocked an audience of customers willing to pay for music and increased revenue across the music ecosystem". "The most important day isn't our listing day".

Spotify's debut will be one of the biggest technology IPOs in recent years. "There's no underwriting syndicate, there's no limited float, no IPO allocations, and no preferential treatment for any investor". "Supply will not be unnaturally constrained", Spotify added, "and price will not be distorted by market stabilization activities or short-sellers gaming a lockup expiration".

Helping listeners find new bands and songs is an "infinitely larger" opportunity in music than so-called discovery was for video, McCarthy said, comparing Netflix's rapid rise from mail-order DVD distribution into a streaming media service to Spotify's audio streaming business.

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The direct listing is critical to alleviating Spotify's losses, which are driven by financing costs, and will enable all late-stage investors to convert debt holdings into equity. Head of artist relations Troy Carter spoke about the company's Spotify for Artists, which helps them pinpoint their audience and its habits and which he said more than 100,000 artists per months are using. In other words, it's not hanging with the financial elites - it wants everyone to be part of the conversation.

The Stockholm-based company's stock will hit the public markets in a direct listing without traditional underwriters.

He went on to explain that "the traditional model for taking a public company isn't good for us" because he believes that it causes companies to focus on short-term goals.

Ahead of its IPO on April 3, the company outlined its upcoming plans in an investor presentation.

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