Spotify files for IPO of up to $1 billion

Music streaming service Spotify filed for a direct listing of up to $1 billion with the U.S. Securities and Exchange Commission on Wednesday, becoming the first major company in the recent past to do so.

A direct listing is an unconventional way to pursue an IPO and will help Spotify list without the need to raise new capital or hire a Wall Street bank or broker to underwrite the offering.

Launched in 2008, Sweden's Spotify is the biggest global music streaming company and counts tech giants Apple <AAPL.O> and Amazon <AMZN.O> as its main rivals.

In its filing, the company said it has 71 million premium subscribers and about 159 million monthly average users. By comparison, Apple Music, which was launched in 2015, has 36 million paying subscribers.

Spotify's premium subscription costs $9.99 a month. Apple Music too charges the same but offers a three-month free trial to its users. Unlike Spotify, Apple does not have an advertising-based free service.

RELATED: Check out Spotify's executives

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Daniel Ek, CEO of Spotify, speaks to reporters at a news conference on May 20, 2015 in New York. Streaming leader Spotify on Wednesday announced an entry into video and original content, hoping to expand its reach beyond music. Spotify, by far the largest company in the booming streaming industry, said it was updating its platform to support videos and would offer news and other non-music content provided by major media companies. AFP PHOTO/DON EMMERT (Photo credit should read DON EMMERT/AFP/Getty Images)
NEW YORK, NY - MAY 20: Daniel Ek, CEO and Founder of Spotify, speaks at a media event announcing updates to the music streaming application Spotify on May 20, 2015 in New York City. The latest updates include the ability to stream video content, podcasts and radio programs as well as original songs for the application. (Photo by Andrew Burton/Getty Images)
NEW YORK, NY - MAY 20: Rochelle King, VP Global User Experience and Design, Spotify speaks onstage at Spotify Press Announcement on May 20, 2015 in New York City. (Photo by Michael Loccisano/Getty Images for Spotify)
D'Angelo (L), American R&B and neo soul singer-songwriter, plays for reporters at a Spotify news conference May 20, 2015 in New York. Streaming leader Spotify on Wednesday announced an entry into video and original content, hoping to expand its reach beyond music. Spotify, by far the largest company in the booming streaming industry, said it was updating its platform to support videos and would offer news and other non-music content provided by major media companies. AFP PHOTO/DON EMMERT (Photo credit should read DON EMMERT/AFP/Getty Images)
NEW YORK, NY - MAY 20: Daniel Ek, Founder and CEO, Spotify speaks onstage at Spotify Press Announcement on May 20, 2015 in New York City. (Photo by Michael Loccisano/Getty Images for Spotify)
NEW YORK, NY - MAY 20: Musician D'Angelo (L) plays a private concert at a media event announcing updates to the music streaming application Spotify on May 20, 2015 in New York City. The latest updates include the ability to stream video content, podcasts and radio programs as well as original songs for the application. (Photo by Andrew Burton/Getty Images)
Daniel Ek, CEO of Spotify, speaks to reporters at a news conference on May 20, 2015 in New York. Streaming leader Spotify on Wednesday announced an entry into video and original content, hoping to expand its reach beyond music. Spotify, by far the largest company in the booming streaming industry, said it was updating its platform to support videos and would offer news and other non-music content provided by major media companies. AFP PHOTO/DON EMMERT (Photo credit should read DON EMMERT/AFP/Getty Images)
NEW YORK, NY - MAY 20: Gustav Söderström, Chief Product Officer, Spotify speaks onstage at Spotify Press Announcement on May 20, 2015 in New York City. (Photo by Michael Loccisano/Getty Images for Spotify)
NEW YORK, NY - MAY 20: Musician D'Angelo plays a private concert at a media event announcing updates to the music streaming application Spotify on May 20, 2015 in New York City. The latest updates include the ability to stream video content, podcasts and radio programs as well as original songs for the application. (Photo by Andrew Burton/Getty Images)
NEW YORK, NY - MAY 20: Daniel Ek, CEO and Founder of Spotify, speaks at a media event announcing updates to the music streaming application Spotify on May 20, 2015 in New York City. The latest updates include the ability to stream video content, podcasts and radio programs as well as original songs for the application. (Photo by Andrew Burton/Getty Images)
NEW YORK, NY - MAY 20: Rochelle King, vice president of user experience and design of Spotify, speaks at a media event announcing updates to the music streaming application Spotify on May 20, 2015 in New York City. The latest updates include the ability to stream video content, podcasts and radio programs as well as original songs for the application. (Photo by Andrew Burton/Getty Images)
NEW YORK, NY - MAY 20: Daniel Ek, Founder and CEO, Spotify speaks onstage at Spotify Press Announcement on May 20, 2015 in New York City. (Photo by Michael Loccisano/Getty Images for Spotify)
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"With our ad-supported service, we believe there is a large opportunity to grow users and gain market share from traditional terrestrial radio," Spotify said.

The company is seeking to list its ordinary shares on the New York Stock Exchange under the ticker symbol "SPOT." 

Revenue for Spotify, which is present in more than 60 countries, came in at 4.09 billion euros ($4.99 billion) in 2017, compared with 2.95 billion euros, a year earlier.

Its operating loss widened to 378 million euros from 349 million euros a year earlier.

(Reporting by Nikhil Subba and Nivedita Bhattacharjee in Bengaluru; Editing by Maju Samuel and Arun Koyyur)

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