The leaders at Spotify thought something as basic as listening to music could be successfully turned on its head. This week they’re seeing if a process that’s a little more complex, selling shares to investors, could also be altered.
The world’s largest streaming music service has its initial public stock offering, or IPO, on Tuesday. But instead of having the sale managed by investment bankers—which is what nearly every large firm does when it first goes public—Spotify is selling its shares directly to investors. If the IPO goes well (its shares opened at $165.90 each, well above the offering price) it could make the company worth about $30 billion while saving the company millions in Wall Street fees. Plus, a successful direct-to-investor IPO could convince other private firms to go down the same route. “We have technology disrupting every single thing we do in life, and this IPO is a metaphor as to how Wall Street needs to adapt,” says Noah Schwarz, senior client partner in Korn Ferry’s Financial Services practice. Read more here.
The world’s largest streaming music service has its initial public stock offering, or IPO, on Tuesday. But instead of having the sale managed by investment bankers—which is what nearly every large firm does when it first goes public—Spotify is selling its shares directly to investors. If the IPO goes well (its shares opened at $165.90 each, well above the offering price) it could make the company worth about $30 billion while saving the company millions in Wall Street fees. Plus, a successful direct-to-investor IPO could convince other private firms to go down the same route. “We have technology disrupting every single thing we do in life, and this IPO is a metaphor as to how Wall Street needs to adapt,” says Noah Schwarz, senior client partner in Korn Ferry’s Financial Services practice. Read more here.
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