Spotify Plans Direct Listing Instead of IPO
David Faber reporting for CNBC:
"Spotify will be a direct listing on the NYSE when it goes public, forgoing a traditional initial public offering, sources told CNBC.
"...During an IPO, the company offers investors shares before it goes public, which allows underwriters to set an initial share price. A direct listing only allows investors to buy shares through the open market, and no price is predetermined."
Will this be a trend for tech companies now that private markets are satisfying the fundraising need that IPOs traditionally fulfill?
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