For quite some time now, we’ve known that Spotify has been working to go public, and the day is finally here. Spotify is officially a public company, and it took an unusual route with a direct listing instead of a more traditional IPO. They company’s shares were set at a price of $132 by the New York Stock Exchange late Monday, per Reuters. This gives the company a value of over $23 billion.
Spotify opened for trading at 12:45PM ET with price starting at $165.90, and 5.6 million shares initially being traded. This is a solid indication that there’s a good amount of interest in Spotify shares.
The flux in share price is because Spotify pursued a less traditional direct listing instead of an IPO. Through this route, it allows the share price to be set by supply and demand, rather than underwriters. Spotify previously hoped for a total valuation of $10 billion, and it seems that the company underestimated the demand due to the Interest in its shares.