![]() Diminishing the voting power of a class of stock, of course, reduces its value greatly. In fact, nearly one-fifth of all companies to go public last year used dual-class shares.īut that does not mean that everyone’s happy with them. Facebook and Alphabet employed the same structure, and it has become a common tactic among tech companies. Next to those abnormalities, the dual-class voting structure looks like a rather tame aspect of the listing. Instead, after Spotify is listed, holders of its stock will simply be allowed to sell whatever volume they want for whatever price the market will bear. There is no underwriter involved, and there has been no “road show” that typically precedes an IPO and helps assess demand. Spotify is not selling any shares itself, so the listing does not qualify as an initial public offering. ![]() The “dual-share” structure is not the only feature that sets this listing apart. Spotify is planning a stock offering in a couple of months, and it appears that the music streaming service’s co-founders are taking their cues from Frank Sinatra’s “My Way.” Even after Spotify shares hit the market, founders Daniel Elk and Martin Lorentzon will retain control of the company by holding onto a separate class of shares with enhanced voting power, a source has told Bloomberg. ![]()
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