Tuesday, September 29, 2020

Music streaming service Spotify goes public

New York, Apr 3 (EFE).- Music streaming service Spotify went public on Tuesday, listing its shares on the New York Stock Exchange (NYSE).

The Stockholm-based company did not follow the usual script for becoming a publicly traded corporation, bypassing a traditional initial public offering (IPO) underwritten by investment banks with a price set at the start of trading for a direct listing on the exchange.

The move also allowed Spotify executives to avoid going on a roadshow to promote the business, which already has 71 million paying subscribers.

Spotify shares began trading on the NYSE under the ticker symbol SPOT.

The NYSE set a reference price of $132 for the shares, which opened at $165.90 before pulling back.

Analysts said they expected Spotify to trade in a wide range until investors determined what an accurate valuation was for the music streaming service.

Shares of Spotify are up $17.78, or 13.47 percent, at $149.78 in late trading on the NYSE.