Record-setting direct listing makes Spotify a $30 billion firm

Spotify Goes Public With An Estimated $30 Billion Market Value

Spotify Share Price Makes History with Stock Market Debut

The popular music streaming service Spotify had an unexpected debut on the New York Stock Exchange (NYSE).

Spotify shares opened at $165.90, giving the Stockholm-based company a market value of nearly $30 billion. This is where the company doesn't issue new shares or seek to raise money through the process of going public, instead it gives existing shareholders the option to sell their shares to the public.

He noted that Spotify has been able to hold its own, maintaining 36 per cent of the subscriber market despite the onslaught of Apple.

Less certain for investors, however, is Spotify's profitability.

Debuting on the New York Stock Exchange, Spotify shares will finally become publicly traded.

Spotify Technology SA shares surged following the largest-ever direct listing on Tuesday, giving the world's leading streaming music service a market value of almost $30 billion. Its 5.7% stake is now worth around $1.5 billion.

In many public listings, and the investors pitch last month, Spotify has spoken about becoming a "platform".

Spotify shares closed 13pc on the reference price give ahead of its IPO yesterday.

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The day before the public offering, Spotify CEO Daniel Ek discussed the decision to avoid the usual fundraising and fanfare of an IPO as an example of the company thinking different.

Spotify has been compared to streaming entertainment service Netflix for its growth potential.

After Spotify launched in 2008, the streaming service company went into the next phase in its venture.

In another break with tradition, Ek and Lorentzon did not attend the exchange to ring the opening bell, although the NYSE building was draped in a huge Spotify banner (pictured above).

"Our focus isn't on the initial splash", he added.

It's not the first time fraudsters have targeted Spotify-an MBW investigation in February revealed how a Bulgarian playlist-maker scammed the Spotify payout system for months previous year.

It has more than 159 million monthly active listeners globally, with 71 million of those paying subscribers.

Like many other "unicorn" companies, Spotify has never posted profits.

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