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The Reinvention Of The IPO

DPO
NPR

The way most companies first sell their shares to the public is tried and true; hire an investment bank, do a roadshow, agree to a lockup period, etc etc.

But Spotify is doing none of those things. In fact it's not doing an initial public offering at all: it's doing a direct public offering instead.

It's an unusual move. but if it works, it could change the way a big part of Wall Street business is done.

Links:
How ans IPO gets done, step by step (CNBC)

Spotify plans to go public on April 3 (CNN)

Greenshoe Options: An IPO's Best Friend (Investopedia)

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Stacey Vanek Smith is the co-host of NPR's The Indicator from Planet Money. She's also a correspondent for Planet Money, where she covers business and economics. In this role, Smith has followed economic stories down the muddy back roads of Oklahoma to buy 100 barrels of oil; she's traveled to Pune, India, to track down the man who pitched the country's dramatic currency devaluation to the prime minister; and she's spoken with a North Korean woman who made a small fortune smuggling artificial sweetener in from China.
Cardiff Garcia is a co-host of NPR's The Indicator from Planet Money podcast, along with Stacey Vanek Smith. He joined NPR in November 2017.