Spotify has confidentially filed for an initial public offering with the US Securities and Exchange Commission.
The music streaming service intends to progress with a direct listing in the first half of the year, according to Reuters' sources.
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Spotify, which was valued at $19bn last year, would not need a Wall Street bank to underwrite its IPO if it opts for a direct listing.
The float has been mooted for some time, however, last year the music giant's plans were put under pressure when reports claimed its losses had widened to as much as £356m.
Spotify's business model has caused controversy with major music stars such as Taylor Swift, who pulled her songs from the streaming service, arguing that it was not paying her appropriately for her work. However, she negotiated better fees and returned to the platform after a hiatus of two and a half years.