Spotify's IPO is not like other IPOs

Spotify is ready to press play on its IPO.The streaming music company filed ...

Posted: Feb 28, 2018 11:49 PM
Updated: Feb 28, 2018 11:49 PM

Spotify is ready to press play on its IPO.

The streaming music company filed paperwork on Wednesday for a $1 billion initial public offering. The company expects to trade on the New York Stock Exchange under the ticker "SPOT."

In an unusual move, Spotify plans to list shares directly on a stock exchange without relying on underwriters to help assess demand and set a price. As a result, Spotify says "the trading volume and price of our ordinary shares may be more volatile."

Spotify will not issue new shares to raise new money. Instead, the offering will give investors an opportunity to own existing shares of what has until now been a privately held company.

The company was founded more than a decade ago and helped shift the music industry from the era of illegal downloads to legal streaming on demand. It upended Pandora's business and has grown in spite of threats from larger rivals like Apple and Google.

Related: The streaming music war is getting ugly

The service has 159 million monthly users, 71 million of which pay for a premium subscription, according to the filing. Apple Music, launched in 2015, has around half that amount.

Spotify sales grew to nearly $5 billion in 2017, up from about $3.6 billion in the year prior. But its losses are growing too.

The company lost about $1.5 billion in 2017, more than double from the prior year. It has lost nearly $3 billion since its founding in 2006, which stems from the cost of licensing content.

"We have incurred significant costs to license content and continue to pay royalties to music labels, publishers, and other copyright owners for such content," the company wrote in its filing.

Spotify is just the latest billion-dollar tech company to file for a public offering this month. Dropbox, a cloud storage service, filed for a $500 million IPO last week.

Other tech unicorns like Uber and Airbnb are said to be waiting until at least next year.

Update: An earlier version of this article incorrectly stated that Spotify would raise as much as $1 billion in its IPO. The $1 billion figure is a placeholder amount. No new shares will be issued in the public offering.

Mississippi Coronavirus Cases

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Cases: 313166

Reported Deaths: 7228
CountyCasesDeaths
DeSoto21496257
Hinds20294414
Harrison17814309
Rankin13573278
Jackson13411246
Madison10066217
Lee9962173
Jones8364163
Forrest7649152
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Lamar621686
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Warren4380121
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Monroe4100133
Union409076
Neshoba4026176
Lincoln3950110
Hancock377786
Leflore3487125
Sunflower335790
Tate332484
Pike3301105
Scott315373
Alcorn311968
Yazoo310769
Itawamba299477
Copiah296465
Simpson294788
Coahoma294379
Tippah287768
Prentiss279560
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Marion268880
Leake266273
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Newton246061
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Holmes188673
Clay184754
Stone182033
Tallahatchie178140
Clarke177879
Calhoun170132
Yalobusha163337
Smith162234
Walthall133845
Greene130333
Lawrence128323
Montgomery126742
Noxubee126734
Perry125938
Amite122842
Carroll121728
Webster114532
Jefferson Davis106932
Tunica104826
Claiborne102230
Benton99125
Humphreys96133
Kemper95428
Franklin83623
Quitman80216
Choctaw76118
Wilkinson66930
Jefferson65428
Sharkey50317
Issaquena1686
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Alabama Coronavirus Cases

Cases: 530325

Reported Deaths: 10966
CountyCasesDeaths
Jefferson763971520
Mobile40908804
Madison34717503
Tuscaloosa25730452
Montgomery24314588
Shelby23401249
Baldwin21107307
Lee15856171
Calhoun14488314
Morgan14282279
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Marshall12210223
Houston10557280
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Cullman9649193
St. Clair9644242
Lauderdale9419241
DeKalb8825185
Talladega8214175
Walker7223277
Autauga6918108
Jackson6804112
Blount6651137
Colbert6292134
Coffee5506119
Dale4828111
Russell440638
Chilton4279112
Franklin425582
Covington4118118
Tallapoosa4019152
Escambia393276
Chambers3559123
Dallas3547151
Clarke350861
Marion3113100
Pike310577
Lawrence299898
Winston274072
Bibb260464
Marengo249264
Geneva249077
Pickens234160
Barbour230757
Hale222677
Butler215969
Fayette212062
Henry188744
Cherokee184445
Randolph179941
Monroe177340
Washington167039
Macon158750
Clay156156
Crenshaw152057
Cleburne148741
Lamar141934
Lowndes138653
Wilcox127030
Bullock123041
Conecuh110129
Perry107526
Coosa107128
Sumter104332
Greene92334
Choctaw60424
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