![]() Spotify’s opening public price was determined by buy and sell orders collected by the NYSE from broker-dealers.īased on those orders, the price was set based on a designated market maker’s determination of where buy orders could be matched with sell orders. The company has structured the stock market listing to allow existing investors to sell directly to the public while offering no new shares of its own.Īnalysts had flagged concerns that foregoing hiring investment banks as underwriters or holding traditional promotional events with institutional investors could mean volatility in Spotify shares once formal trading kicked off. Spotify offers access to vast libraries of music rather than making users pay for CDs or downloads of individual albums or tracks. Since launching its streaming music service a decade ago, the Stockholm-founded company has overcome heavy resistance from big record labels and some major music artists to transform how the industry makes money. That was in line with informal trading on Monday, with shares changing hands at about $132, which would value the company at more than $23 billion. The NYSE had set Spotify’s reference price late on Monday, giving an early estimate of the level at which supply and demand could be balanced. equity selloff led by tech stocks, although the market had found firmer footing at midday on Tuesday. ![]() The strong early trading for Spotify came on the heels of a steep U.S. ![]() Spotify’s unusual route to publicly trading its shares will likely be watched by other technology companies that could be tempted to list without selling new shares, and by bankers that could lose out on millions of dollars in future underwriting fees. The Spotify logo is displayed after the stock began selling as a direct listing on the floor of NYSE.
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