Spotify’s Direct Listing Makes It a $30-B Company

Spotify’s Direct Listing Makes It a $30-B Company

Spotify’s Direct Listing Makes It a $30-B Company


Spotify Technology SA (NYSE:SPOT) shares surged following the largest-ever direct listing (non-IPO) Tuesday, giving the world’s leading streaming music service a market value of nearly $30-B.

Spotify shares opened at 165.90, up nearly 26% from a reference price of 132 a share set by the on the New York Stock Exchange late Monday.

Spotify’s unusual route to publicly trading its shares via a direct listing rather than a more usual initial public offering will likely be watched by other companies tempted to list without selling new shares, and by bankers that could lose out on millions of dollars in future underwriting fees.

Some 14-M shares had changed hands within an hour after trading began Tuesday. Nearly 91% of Spotify’s 178-M shares were tradable, a much higher percentage than typical in a traditional IPO.

It is a fair market price, not manipulated or set by any puts and calls by banks or institutional investors

Spotify shares were last at $160.32, up 21%.

The NYSE had set Spotify’s reference price late on Monday, giving an early estimate of the level at which supply and demand could be balanced.

That was in line with informal trading Monday, with shares changing hands at about 132, which would value the company at more than $23-B.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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