Spotify IPO will have no underwriting banks

Advertisement

In a rare move in finance, Spotify has publicly broadcast an investment pitch to individuals to buy shares of the music streaming company when it makes its public offering — a move that usually involves private meetings with big banks.

Spotify hopes to have buy-in from investors who share its mission for growth rather than profits. CEO Daniel Ek said that his company will not sell stock on a bourse, promising that market volatility won’t greatly affect capital put in.

“You won’t see us ringing any bells or throwing any parties,” Ek said. “Since Spotify isn’t selling any stock in the listing, we’re really entirely focused on the long-term performance of the business.”

Even as the service continues to attract subscribers are a fast clip and as revenues hit over €4 billion in 2017, the company grew operating losses last year by 8 percent to €378 million. Spotify started 2018 with 71 million paying subscribers and hopes to end it with 100 million.

Reuters estimates the Swedish firm’s value at $19 billion. It’s not clear how shares will be priced right now, though guidance is expected on March 26.

Share This Post
Advertisement
What's your reaction?
Love It
0%
Like It
25%
Want It
25%
Had It
25%
Hated It
25%
About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.