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Spotify lowers estimate of upcoming IPO's maximum value to $444.6M

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Spotify lowers estimate of upcoming IPO's maximum value to $444.6M

Spotify Technology SA, the parent company of streaming music platform Spotify AB, lowered its estimate of the maximum aggregate value of shares to be sold in its upcoming initial public offering to $444.6 million from $1 billion.

In a March 20 amended SEC filing, the European company, which is pursuing a direct share listing, said it expects registered shareholders to sell up to 55,731,480 ordinary shares. Spotify will not receive any proceeds from the sale of shares by its existing shareholders. While the company is still preparing to list on the public markets, its shares have been exchanged in private transactions for prices ranging from $37.50 to $125.00 in 2017 and from $48.93 to $132.50 for the current year through March 14.

Spotify is set to begin trading on the the New York Stock Exchange under the symbol SPOT from April 3. The opening public price of its ordinary shares on the NYSE will be determined by buy and sell orders collected by the NYSE from broker/dealers.

Launched in 2008, the streaming music platform had 71 million paying subscribers and more than 159 million monthly active users as of December 2017.

For the year ended Dec. 31, 2017, the company generated €4.09 billion in revenue, up from €2.95 billion in the prior year. The company posted a net loss of €1.24 billion, or €8.14 per share, compared to the year-earlier loss of €539 million, or €3.63 per share. The company's operating loss for 2017 was €378 million, versus €349 million in 2016.

Goldman Sachs & Co. LLC, Morgan Stanley, and Allen & Co. LLC are acting as financial advisers for the offering.