Music-streaming pioneer Spotify is hoping to attract a new crowd of fans on Wall Street as its competition with Apple heats up.
Spotify is pursuing an unusual initial public offering that will sell some of its existing stock instead of issuing more shares to raise money. The strategy will make it easier for Spotify's existing stockholders to cash out of their investments while creating a potential new financial channel for the company.
Having a publicly traded stock could also draw more attention to Spotify and its music service as it tries to fend off a growing competitive threat from Apple, the world's most valuable company and one of its best-known brands.
Spotify indicated US$1 billion worth of stock will be traded on the New York Stock Exchange, although the amount is likely to be much higher, based on information contained in documents released. The Luxembourg-based company took its first steps toward an IPO in a confidential filing a few weeks ago.
The numbers revealed Spotify's music-streaming service boasts 71 million subscribers, nearly twice as many as Apple's rival service.