Spotify Direct To Market?

Spotify was one of the most eagerly awaited IPOs of this year, but it appears that the company may bypass the IPO market entirely. Recently, sources said that Spotify would be the first major company to carry out a direct listing on the NYSE. In a traditional IPO, the company sells stock to investors through investment banks. The company receives the funds raised, less the underwriter's commission. In a direct listing, the exchange lists the stock, allowing employees to buy and sell shares on the market. No new shares are created and no funds are raised by the company.