Spotify evaluated in $10 billion dollars plans to enter the stock market

Spotify's shares will be listed on the stock exchange maybe in September. Admission to the market will be carried out without any offer of sale of securities to new investors.

The Wall Street Journal reports that Spotify is preparing the application for admission to stock exchange listing, which may take place in September 2017. The company that operates the music streaming service intends to have its shares available to be freely traded in the market, but the entry will be made directly, without recourse to any offer of new shares.

Spotify's managers do not intend to raise capital through an initial public offering and that they only aim to have the shares quoted says the newspaper. The initiative will allow current shareholders to transact the shares they hold in the portfolio, as well as open the possibility of new investors to participate in the company's capital through the purchase of shares already issued.

The Wall Street Journal adds that Spotify aims to reach an estimated $ 10 billion. Without a reference price at the stock exchange, which is usually fixed through the value at which the new or existing shares are sold in the course of the initial public offerings, the price of Spotify and the market value will be established by the meeting between the offer and demand.

In 2016, subscription services such as the one offered by Spotify generated revenues of $ 2.5 billion in the United States, compared with $ 1.2 billion in the previous year, which Growth of more than 108%. Streaming has gained weight in consumer music choices, over physical media such as CD and digital file downloads.

The company is in the test phase to offer hi-fi service, with high quality sound, which will cost more for interested music lovers. Spotify currently has 50 million subscribers who pay a monthly subscription in order to have access to the catalog that is made available by the company, without interruptions to advertising.