Spotify will be a direct listing on the NYSE when it goes public, forgoing a traditional initial public offering, sources told CNBC.

The streaming music service is valued at $13 billion, according to sources. The listing is expected between the fourth quarter of 2017 and first quarter of 2018. Morgan Stanley, Goldman Sachs, and Allen & Co. are advising on the listing, the sources added.

The company currently has 50 million subscribers and a 43 percent growth rate in revenue. It employs over 3,000 people.

During an IPO, the company offers investors shares before it goes public, which allows underwriters to set an initial share price. A direct listing only allows investors to buy shares through the open market, and no price is predetermined.

— Reporting by CNBC's David Faber.