Spotify’s US listing highlights Europe’s failings

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Spotify’s listing, with an estimated market valuation of about $29 billion (€23.6 billion), is one of the largest market listings to have been launched this year. Despite the fact that the company is European (founded in Sweden) with its holding company registered in Luxembourg, it has opted to go public in the US.

Karel Lannoo argues in this contribution that Europe missed a golden opportunity to show that it can provide fertile ground for high-performance high-tech firms. European rules for listings need a face-lift, as they are incomplete and complex. An initiative is urgently needed (ahead of Brexit) to enable truly pan-European offerings of securities, and even more to raise the awareness of the importance of fostering vibrant capital markets for financing enterprises.

Karel Lannno is General Manager of ECMI and CEO of CEPS.