After months of speculation, music streaming giant Spotify has filed for an initial public offering with the SEC, a source familiar with the IPO told TheWrap.
The filing, first reported by Axios, will be a direct listing during the first quarter of 2018, rather than a traditional float. The company has received guidance from Morgan Stanley, Goldman Sachs, and Allen & Co, according to CNBC.
Spotify’s direct listning will have Wall Street watching closely. The decision allows the streaming service to bypass using investment banks to sell new shares to investors, and instead allows the company to offer its shares straight to the pubic. This cuts down on heavy fees incurred in the IPO process.
A direct listing holds a measure of added intrigue, though, as there is no “lock up” period barring early investors from selling their equity once Spotify is live on the NYSE.
Spotify has racked up customers in the last year, passing the 60 million paid subscription threshold during the summer — after hitting 50 million last March. That’s about twice as many paying subscribers as its chief rival, Apple Music. Altogether, the streaming service has more than 140 million users.
The streaming service, which launched its app in 2008, is valued at $13 billion, according to CNBC.