Spotify goes for direct listing and becomes a public company

It has been a long journey for Spotify in becoming public company, but now that day has arrived. The company is now public. Instead of traditional IPO method, it is trying an unusual step of selecting direct listing. Late Monday, New York Stock Exchange set the price of $132 for its shares. From the price set by New York Stock Exchange, the value of Spotify goes over $23 billion.

How will the First Trade of Spotify be?

The first trade of Spotify is yet to happen. The company had taken longer than Alibaba to start trading. It is very unusual when a company takes too longer to start its trade and traders usually find this annoying. Traders were warned by New York Stock Exchange that the company could take longer than usual for its first trade because of the direct listing. According to the reports of The Wall Street Journal, the expected range of Spotify’s first trade is crawling up around $160 to $170. So, it suggests that traders are showing a lot of interest in shares of Spotify. Everyone would love to see what happens in the market when the company finally has its first trade. Variations in the price of share is due to the fact that Spotify opted for a less traditional direct listing method, rather than IPO. So, direct listing causes the price of share to be fixed by supply and demand instead of underwriters.

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The company estimated for a total valuation of $10 billion last year. And now its value goes over $23 billion. From the interest of traders in its shares, we could expect streaming service to get something more than that.

Update:

Spotify’s shares were open for trading at 12:45 PM ET. The initial price was $165.90. At the same time, 5.6 million shares were successfully traded.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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