Spotify is reportedly considering an unconventional direct listing on a stock market that stops short of a full-blown initial public offering.
It could see Spotify register shares on a stock exchange and become a publicly listed company without raising new cash, the Wall Street Journal reported.
Shares would be traded on the day of listing, with the price based on supply and demand, rather than new investors buying shares the day before trading.
Spotify declined to comment.
A direct listing would save the music service the underwriting fees needed to launch an initial public offering (IPO), and would avoid diluting the value of existing stakes in the company.
It could also sidestep a surge in first-day trading that usually takes place after an IPO, which can signal that a company undervalued its newly issued shares.
The tactic, though rare, is usually used by smaller companies that do not expect high levels of trading in their stock.
Spotify, which last year issued a $1bn (£801m) convertible bond, was publicly valued at $8.5bn (£6.8bn) in 2015.
The Swedish firm was founded more than a decade ago and now has more than 50 million paying subscribers.
This week it also signed a new long-term licensing deal with Universal Music Group, the world's largest record label.
Spotify includes TPG and Goldman Sachs among its major investors.
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