- Spotify went public on Tuesday through a so-called direct listing.
- The stock began trading at $165.90 a share shortly after noon, resulting in a valuation of roughly $30 billion.
- Shares lost about 10% in their first day of trading on Wall Street.
- Track Spotify’s stock in real time here.
Shares of Spotify slid as much as 10% in their first day of trading on the New York Stock Exchange Tuesday.
After receiving a reference price of $132 the day prior to the offering, the stock officially began trading at $165.90 per share at 12:44 p.m. ET Tuesday, netting the freshly public company a valuation of about $30 billion.
After initially spiking as high as $169, shares eventually slid to close at $149.60, according to Markets Insider data.
In lieu of a traditional initial public offering, Spotify used what’s known as a direct offering – something it described as a “novel method” for going public. It’s the stock-trading equivalent of opening a store and hoping people will just stop in.
The direct listing also meant the company listed without underwriters, a set price, a set supply of shares, or a lock-up on existing investors.
As of January, Spotify had 70 million subscribers, compared with Apple Music’s 36 million. Apple Music, however, was growing at a much faster rate than Spotify: 5% versus 2%.
Check out Business Insider’s full coverage of Spotify’s unusual public offering:
- The New York stock exchange just got Spotify’s country of origin all mixed up – by raising the Swiss flag
- Goldman Sachs’ COO reportedly used his side gig as an EDM DJ to help win Spotify’s business
- Spotify investor Lakestar won’t be selling its shares – and thinks it should be a $100 billion company
- ‘There’s going to be a lot of interest in the stock’: Here’s one way to play the Spotify direct listing
- Spotify’s using a ‘novel method’ to go public, and it means the stock price could ‘decline significantly and rapidly’
- Spotify is going public at a terrible time for tech stocks – but this chart should get investors excited
- A long wait, and then wild market swings: What to expect when Spotify goes public
- RBC: Here’s why Spotify is dominating the streaming-music industry
- Taylor Swift just picked Spotify to host her exclusive music video – on the same day Apple Music launched videos
- SPOTIFY: We expect revenue to grow 20 to 30% this year
- Spotify reveals that 2 million free users were dodging advertisements by using ad-blocking apps