Ahead of Spotify’s IPO on the New York Stock Exchange tomorrow, the music behemoth’s founder and CEO explained why the streaming service’s debut as a public company is just another day for him and his employees.
“Spotify is not raising capital, and our shareholders and employees have been free to buy and sell our stock for years,” Daniel Ek wrote in a company blog post about Spotify’s IPO. “So while tomorrow puts us on a bigger stage, it doesn’t change who we are, what we are about, or how we operate.”
Spotify is going down a nontraditional route by choosing a direct listing process rather than a standard IPO. No new stock will be issued and the company’s employees and existing investors Ek mentioned will be able to sell their shares directly to the public.
“Normally, companies ring bells. Normally, companies spend their day doing interviews on the trading floor touting why their stock is a good investment. Normally, companies don’t pursue a direct listing,” Ek wrote. “While I appreciate that this path makes sense for most, Spotify has never been a normal kind of company. As I mentioned during our Investor Day, our focus isn’t on the initial splash. Instead, we will be working on trying to build, plan, and imagine for the long term.”
Spotify’s IPO is expected to make a splash on the market. Analysts are predicting the Sweden-based company could soon be valued at more than $20 billion — but Ek is asking employees, investors and observers alike to remain subdued.
“Remember, tomorrow is just another day in our journey to fulfill our mission,” he wrote.