Spotify expects to list its ordinary shares under the symbol (NYSE:SPOT)
In terms of control: The company is issuing 10 beneficiary certificates (each worth one vote) for each share of record held by “entities beneficially owned by” the company’s founders, Daniel Ek and Martin Lorentzon. That will result in a total of 379.2M beneficiary certificates.
As expected, the company is listing without underwriters. It has a placeholder amount of $1B.
The company’s engaged Goldman Sachs, Morgan Stanley, and Allen & Co. to serve as advisers on some matters tied to its listing.
Shareholders will be guided towards an opening share price via private market transactions, which CNBC reports are rumoured to be around $US132 per share, giving the company a valuation of over $US23 billion ($29.6 billion). Spotify has 176,976,280 ordinary shares outstanding, according to its filing.
Spotify had an operating loss of $462 million in 2017, up from $426 million the previous year, even though its revenue increased from $3.6 billion to $5 billion during the same period.
The company revealed that it’s paid $9.8 billion in royalties to artists, music labels, and publishers since its launch a decade ago.
Spotify remains a long way from making money as of today but things can change with the new IPO.
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