Spotify has confirmed that it will have its Initial Public Offering (IPO) on the New York Stock Exchange (NYSE) on 3 April 2018. Paul Vogel, Head of Investor Relations at Potify, also added that it will be a direct listing explaining that it was more “transparent and more accessible to a wider range of investors” as compared to a traditional IPO.
The announcement came shortly after the world's largest music streaming platform had earlier in March 2018 officially launched in South Africa. The South Africa launch, along with official launches in Vietnam, Romania and Israel also in March 2018, means that Spotify is now available across 65 countries around the world.
"We’re really excited to bring Spotify to Israel, Romania, South Africa and Vietnam, connecting their rich music cultures with millions of artists and users across the world," said Cecilia Qvist, Global Head of Markets at Spotify, in a statement announcing the launch.
In announcing the IPO date, Vogel also confirmed that the company would announce financial guidance for Q1 2018 on 26 March 2018, which is a week before Spotify's direct listing on the NYSE.
According to some reports, Spotify is currently valued above $20 billion. This valuation is apparently based on some of the recent private share trades between investors in the music streaming platform. Based on that, it is highly possible that some of Spotify'major investors, namely the three major music companies (Universal, Sony and Warner) and Merlin, likely hold shares in the music streaming platform jointly worth approximately between $2 billion and $3 billion. This is as a result of a cumulative ownership stake covering between 10% and 20% of the streaming company.
As far as launching in more Afrikan countries is concerned, Spotify has been silent, but it is hoped that with the IPO and the company looking to please investors it will expand to more markets.Share this article via: