For instance:• There's no “lock-up” period to prevent early-stage investors and employees from selling shares in the months following a listing. • IPO's tend to make money for the institutional investors should the stock go up past the offering price. A direct listing means that any worry by institutional investors may be mitigated by the majority of sales made to less sophisticated retail investors. It's a complicated equation in that both Spotify's investors and the company need to navigate, but not one without its minefields. Just by mentioning the fact that a high-margin product was on the drawing board would spark major market interest, and could dramatically change the stock price.

Source: Forbes August 26, 2017 15:00 UTC