Spotify is skipping an IPO. Good.

Let's praise the music streaming giant for this unusually honest cashout

Spotify.
(Image credit: REUTERS/Dado Ruvic/File Photo)

Spotify is bound to be one of the biggest arrivals on the stock market in 2018. It should be publicly trading on the New York Stock Exchange by December — but there won't be an IPO. And that's a good thing.

Initial public offerings have become the traditional route by which companies debut on public stock markets. But IPOs also involve paying Wall Street firms hefty fees, a big cross-country roadshow to talk up the stock to investors, and then an offering of brand new stock for people to buy. Spotify will skip most of that hullabaloo with a direct listing instead. The company won't offer any new shares; instead, Spotify's existing investors will simply be able to publicly sell the shares they already own.

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