Going Public Without An IPO

Law360 (May 16, 2018, 1:16 PM EDT) -- On April 3, 2018, Spotify made a big splash by debuting on the New York Stock Exchange without an initial public offering. Instead, Spotify filed a resale registration statement registering the securities already held by its existing shareholders. The process is referred to as a direct listing. As most of those shareholders had invested in Spotify in private offerings, they were rewarded with a true exit strategy and liquidity by becoming the company’s initial public float.

In order to complete the direct listing process, NYSE had...
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