Spotify files to go public not raising money, in direct listing

Spotify confidentially filed IPO documents with the SEC at the end of December, Axios reported this month.

Spotify is pursuing a direct listing instead of a traditional float and tech companies are watching.

According to WSJ, in a direct listing, a company transfers its shares to an exchange without raising money as is done in a typical IPO.

The goal of the direct listing is to provide a way for shareholders to cash out.