Swedish music streaming service Spotify has announced its
intention to forego a traditional initial public offering (IPO)
process and offer securities via a direct listing on the New
York Stock Exchange.
The approach will allow the company to raise a significant
amount of capital via private placements of existing shares,
without the need to go public or rely on underwriters or
investments banks to guide them through the increasingly
Sources suggest that the process will gain momentum, and
could well become the norm rather than the exception for tech
unicorns. Direct listings are uncommon, but not unique. Several
examples on the Nasdaq in the past by relatively small
companies were unsuccessful in that the companies
didn’t meet their objectives. ...