Global music streaming giant Spotify has filed for a direct listing of up to $1 billion with the U.S. Securities and Exchange Commission. This makes the company among one of the first in modern past to file for the atypical direct listing.
By directly listing to the U.S. Securities and Exchange Commission, Spotify will be able to escalate new capital without having to bring on a Wall Street bank or broker to indemnify the offering. CNBC suggests that the company could be valued at more than $23 billion.
Last year, Spotify's revenue came in at $4.99 billion globally, while it only had about $3.6 billion in 2016. Furthermore, its losses last year were almost $1.5 billion.
Spotify has a few competitors, but it lists Apple and Amazon as its main ones.
Spotify stated in the filing that it currently has 71 million premium subscribers and roughly 159 million average users every month. Apple Music only has about 36 million paying subscribers.
Spotify will be listed on the New York Stock Exchange under "SPOT" symbol.
You can read the full F-1 Registration Statement here.
Spotify was launched in 2008 and revolutionized the way we listen to music in the modern day. The service, unlike Apple Music, offers a free tier with advertisements. $9.99/mo. will unlock the premium features of the service, but students at an accredited college or university are able to receive a discount of $4.99/mo.
“With our ad-supported service, we believe there is a large opportunity to grow users and gain market share from traditional terrestrial radio,” Spotify states.
The company continues to struggle to earn money and has failed to pay rights holders.