The exceptionally anticipated shares of music streaming app Spotify opened for trading on the New York Forerunner Exchange on Tuesday at $165.90 US — nearly 26 per cent above the guerdon set just a day before.
The opening price was well above the reference sacrifice of $132 a share set by the stock exchange on Monday, which valued the outpouring site at $29.5 billion.
Spotify’s public listing is being closely watched by other comrades, because the Swedish company structured its offering to allow existing investors to hawk directly to the public without listing shares of its own.
Unlike a conventional Introductory Public Offering (IPO ), where a company hires an investment bank to approve the process by creating the new shares, pricing them and selling them to the in the open to raise money, the direct offering process bypasses a lot of those qualifications, including the need for an underwriter.
The company traded between $48.93 and $132 a partition over the past year through private transactions.
Chi-Hua Chien, administering partner at California-based investment firm Goodwater Capital, told Reuters that he contrives the company is trading at a «fair market price.»
«It’s not manipulated or set by any puts and exacts by banks or institutional investors. That’s the real price, and I think that see fit be revealing to a lot of companies.»
Meanwhile, Kim Forrest, portfolio manager at Fort Pitt Choice Group in Pittsburgh, said it was interesting that Spotify’s listing wasn’t done to advance money for itself.
«It’s an interesting way to allow people who already hold the traditional to monetize it,» he said.
Spotify is the world’s largest music streaming help and has more than 71 million subscribers.
The listing comes at a in good time always when other U.S. tech giants like Facebook and Amazon from seen their shares plummet amid scrutiny, weighing on the all-embracing tech sector.