Spotify valued at $30 billion as listed shares surge 26 percent
Swedish music streaming company Spotify launched its direct listing of shares on the New York Stock Exchange at $165.90, more than 25 percent the exchange’s announced price from yesterday. That peak price translates in to a company valuation of almost $30 billion.
The largest-ever direct listing on the bourse makes 91 percent of the company’s 178 million shares tradable, Reuters reports, and 14 million of them were moved within the first hour of the business day. CEO Daniel Ek was not present at the exchange for the launch.
Direct listing differ from an initial public offering in that underwriting banks do not contribute capital to the company’s valuation as listed on the exchange.
The listing comes as tech stocks have plummeted for the past several sessions as President Donald Trump has made negative comments about e-marketplace Amazon, calling it a “scam.”