Initial Public Offering Filed by Spotify

Spotify has secretly filed for an initial public offering with the Securities and Exchange Commission of the United States.

according to sources of Reuters, the music streaming service aims to progress with a direct listing in the first two quarters of the year.

Spotify, which was valued at $19bn in 2017, would not require a Wall Street bank in order to underwrite its IPO if it opts for a direct listing.

For some time, the float has been mooted. In 2016, however, the plans of the music giant were placed under pressure when reports claimed that its losses had widened to as much as £356m.

The business model of Spotify has prompted controversy with major music stars including Taylor Swift, who pulled out her songs from the streaming service, claiming that the company was not appropriately paying her for her work. However, she negotiated for better fees and came back to the platform following a hiatus of two and a half years.