Spotify filed a prospectus to sell shares on the New York Stock Exchange, an indication of the imminent arrival of one of the most anticipated technology stocks in years.
Music streaming application Spotify is looking to attract a new target market on Wall Street to help fend off a growing competitive threat posed by Apple. Spotify will expand its financial arsenal with an initial public offering of stock aiming to raise $1 billion. Spotify has offered a streaming service since 2008 and has 159 million monthly active users including 71 million paid subscribers globally. Apple Music has about 36 million subscribers, but unlike Spotify it does not offer a free tier supported by advertising.
Spotify also offers a free service that people can listen to if they are willing to tolerate ads in between the song and music. Overall, Spotify says 159 million people worldwide listen to its music services each month and they have 71 million of subscribers globally.
Spotify’s music service seeks to drum up $1 billion in IPO
In an unusual move, the firm will list its shares directly on the NYSE. Rather than issue new shares, Spotify’s will take their shares directly to the market by the shareholders.
That will allow early investors and employees to sell their stakes.
Spotify indicated $1 billion worth of stock will be traded on the New York Stock Exchange, although the amount is likely to be much higher than expected.