Music streaming firm Spotify has reportedly filed for an initial public offering. The Spotify IPO is reportedly attracting even more attention than is typical for tech firms these days because the company is seeking a direct listing rather than a traditional float.

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Direct listing sought for Spotify IPO

Citing “multiple” unnamed sources, Axios reports that Spotify filed its IPO documents confidentially toward the end of December. The media outlet also states that both Wall Street and Silicon Valley are paying extra attention to the Spotify IPO because of how the company is aims to go public. According to Axios, if the direct listing ends up being successful for the streaming firm, the Spotify IPO could change the way some tech firms go public.

By seeking a direct listing rather than a traditional float, Spotify is trying to avoid the need to complete a road show for its initial public offering. Direct listings also avoid many of the other “typical IPO accoutrements,” which include some of the fees required on Wall Street. However, several investment banks are involved in such a listing. It does seem like the standard period of quiet is still in effect for the Spotify IPO, however, as the streaming firm declined to make a comment on Axios' report.

Spotify IPO could take place in the first quarter

The media outlet states that the company seems to be aiming to go public at some point in the first quarter, which makes sense due to the timing of the confidential IPO filing in late December. However, one problem that could affect the Spotify IPO is the lawsuit that was announced on Tuesday. The streaming firm faces a $1.6 billion lawsuit for alleged infringement of copyrights.

Wixen Music Publishing sued the streaming firm last week, alleging that it used thousands of songs without having a license to use them or paying anything to the songs' publisher. Among the artists that Wixen owns the rights to are the Doors, Neil Young, Tom Petty and many more.