Credits: Spotify

One of the biggest music streaming service in the world, Spotify has decided to go public. According to CNBC, despite gradual growth since its inception back in 2006, Spotify is adopting a different method of going public.

Spotify does not plan on setting any primary share price. Instead, they will directly start trading at the New York Stock Exchange. In an IPO filing, Spotify stated: “As this listing is taking place via a novel process that is not an underwritten initial public offering, there will be no book building process and no price at which underwriters initially sold shares to the public to help inform efficient price discovery with respect to the opening trades on the NYSE.”

Spotify is collaborating with Morgan Stanley & Co. LLC as their financial advisers to help set their opening share price. Despite Spotify’s rapid growth through the years, having 71 million paid subscribers and more than 159 million ad-monetized monthly active users (MAUs), the streaming platform is losing money fast.

Credits: The HostBaby Blog

The company’s losses in 2016 amounted to $662 million and swelled to a whopping $1.5 billion in 2017. Given their consecutive years in loss, going public is a wise decision from Spotify.

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