Spotify CEO Eligible To Sell Up To $2B Stake
Swedish Music Streaming Giant Files To Go Public
The global streaming music giant Spotify has disclosed for the first time how many shares the Swedish CEO and co-founder, Daniel Ek, is eligible to sell when the company shares start trading on the NYSE. In a new filing on Tuesday, the company revealed that Ek is eligible to sell 15.8 million shares of the company worth up to $2 billion in its direct listing. The stake is estimated to be worth between $775 million to $2 billion at the most recent private market prices, which ranged from $48.93 to $131.88 for the month of March, according to Spotify's updated filing.
According to Reuters, in an amended filing with the U.S. Securities and Exchange Commission, Spotify said it expects current shareholders to sell up to 55.7 million ordinary shares when the stock begins trading on the New York Stock Exchange on April 3.
Instead of a traditional IPO, Spotify plans a direct listing, which will allow investors and employees to sell shares without requiring the company to raise additional capital or hire a Wall Street bank or broker to underwrite the offering.
Spotify is currently valued at roughly $19 billion on the private markets but is still waiting on help from Morgan Stanley to evaluate, buy and sell orders on the NYSE as well as to set an opening price for its direct listing.
Despite this announcement, Ek has given no public indication of his intention to sell his shares in the company. Either way, he will still retain 37 per cent voting power in Spotify regardless of how many newly registered shares he eventually sells.