Here’s why Spotify will go public via direct listing on April 3rd

Spotify explained why it’s ditching the traditional IPO for a direct listing on the NYSE on April 3rd today during its Investor Day presentation.

Spotify explained the rationale for using a direct listing to go public with five points:

  • List Without Selling Shares  – Spotify has plent of money with $1.3 billion in cash and securities, has no debt, and has positive free cash flow
  • Liquidity – Investors and employees can sell on public market and sell at time of their choosing, while new investors can join in
  • Equal Access – Bankers won’t get preferred access. Instead, the whole world will get access at the same time
  • Transparency – Spotify wants to show the facts about its business to everyone, rather than giving more info to bankers
  • Market-Driven Price Discovery – Rather than setting a specific price with bankers, Spotify will let the public decide what it’s worth


from TechCrunch http://ift.tt/2pdi0Ky

No comments:

Post a Comment