Spotify Ipo April 2020

Spotify will begin selling its stock directly to the people on April 3 in what is sure to be a volatile and fascinating first day of trading for the music company.

Spotify disclosed the date on Thursday at its “Investor Day,” a livestreamed, open-to-the-public version of the roadshow that typically predates an initial public offering.

Spotify, though, is forgoing a traditional IPO — in which stock is sold in advance of the opening day to some institutional investors — and executing a novel “direct listing” in which company shares are sold directly to mom-and-pop stock pickers.

The company has acknowledged that trading could have some wild ups and downs during those first days as the market tries to reach a consensus on how much Spotify is worth.

But lots of other highly valued startups are closely watching Spotify’s broader performance to see if a company can successfully list without the fees and heavy imprint of bankers.

Trading of the other highly anticipated IPO of early 2018, Dropbox, is expected to begin late next week.


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This article originally appeared on Recode.net.

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