Streaming music leader Spotify has officially filed papers to take the company public. According to papers submitted to the SEC today the company is looking for a late March or Early April start to public stock trading with a valuation of $23 billion.
The company also disclosed the fact that it’s lost nearly $1.5 billion in 2017. The streaming provider says that on private exchanges shares of the company have been selling for as high as $132.50 USD. But the price has also traded as low as $90.
Major labels own 20% of the company, which translates to approximately $5 billion. The value of the direct public offering is set at $1 billion.
According to Digital Music News:
Spotify will trade on the New York Stock Exchange as ‘SPOT,’ according to the filing. Most notably, there are no underwriters listed on the F1 submission, with Spotify opting to skip expensive roadshows and bankers. That’s a controversial approach, though it certainly saves Spotify a lot of money.
Whether the valuation of the company holds up in investors eyes remains to be seen. As happens with many public offerings, stock prices tend to see a dip in the beginning as early investors take profits.
The company currently has 71 million paid subscribers and analysts say that stability will definitely be helped as that number reaches 100 million, and eventually (and hopefully) 150 million.