Ad Banner
spotify-0405-1801
News

Spotify is nearly worth $30 billion in Wall Street debut

According to a report by CNN, Spotify did not raise new capital and just simply listed existing shares directly on the stock exchange without relying on underwriters to attract investors, set a price and stabilize the stock as it begins trading. Spotify opened at $165.90 a share on the New York Stock Exchange and later fell at $150 a share.

Unlike tradition IPOs, the unusual IPO process that Spotify did had analysts wonder what to expect after the streaming music service went public. “Officially we are not even calling it an IPO,” says Matt Kennedy, an analyst at Renaissance Capital, which manages IPO-focused exchange-traded funds.

Spotify CEO Daniel EK wrote on a blog post that the decision to avoid the usual fundraising and fanfare of an IPO as an example of the company thinking differently. “While I appreciate that this path makes sense for most, Spotify has never been a normal kind of company.” EK said.

If Spotify can pull this off, its alternative public listing process could entice other big name companies who don’t need as much investor demand as companies do in a traditional IPO.

(Photo source: Reuters/Dado Ruvic / Hayoung Jeon/Shutterstock / Facebook – @Infochat.news)