THREE WEEKS UNTIL SPOTIFY IPO (REPORT)

Spotify plans to list shares on the NYSE the week of 4/2, informed sources tell Bloomberg.

The story explains the distinctions between a standard initial public offering and the unorthodox approach Spotify will take in layman’s terms. Rather than issuing new shares or raising money in its IPO, the streamery’s existing stakeholders will offer their shares to investors. This variant is known as a direct listing.

The Daniel Ek-led company will spend the next few weeks meeting with investors to manage the uncertainty inherent in this approach, Bloomberg reports. Banks typically help companies establish a price range where a stock will debut to ensure that its value doesn’t plummet on day one.

Through its ongoing efforts, Spotify has established a valuation north of $20 billion.