Spotify filed confidential IPO documents with the Securities and Exchange Commission at the end of December, signaling that the Swedish music streaming service will list its stock directly onto the New York Stock Exchange, per Axios.
The Stockholm-based company, founded in 2006, is pursuing a direct listing instead of the traditional IPO method, in which Wall Street banks help businesses secure investors. Spotify is expected to go public by March 31st, Axios reports.
By filing in private, businesses are able to gauge interest from investors before going public. In the direct listing method, demand alone establishes a stock’s price, bypassing the usual route of hiring investment bankers to set a price. CNBC previously reported that the company planned to list on the New York Stock Exchange and the public offering could value the company up to $20 billion.
In December, as the streaming service explored going public, Spotify had an estimated valuation of $19 billion, Reuters reported. As of fall 2017, the streaming platform had accumulated 140 million regular users, including 60 million paid subscribers.
A rep for Spotify declined to comment to Rolling Stone.
News of the impending IPO was marred Tuesday when Wixen Music Publishing revealed they had filed a $1.6 billion lawsuit against Spotify, accusing the company of streaming thousands of songs without compensation. The legal action follows similar lawsuits filed against Spotify by publishing companies and songwriters claiming that Spotify under-compensates songs’ rights holders. As a result of the lawsuit, Spotify will likely need to “add a new risk factor” ahead of its IPO filing, Axios reports.