(Hypebot) – Spotify will forgo an IPO and do a direct listing on the New York Stock Exchange, sources tell CNBC. Those same sources say that the listing is expected in the fourth quarter of 2017 or first quarter of 2018 at a $13 billion valuation.
A direct public offering would save Spotify millions of dollars in fees. Morgan Stanley, Goldman Sachs and Allen & Co. are advising on the listing, according to the source.
A direct public offering (DPO) is similar to an initial public offering (IPO) in that securities (stock) is sold to investors. But unlike an IPO, a company uses a DPO to raise capital without a pre-determined price or "firm underwriting" from an investment banking firm or broker.
