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What We Know About Spotify's First Day Of Trading, So Far
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Tuesday marks the first day that music streaming powerhouse Spotify plans to start trading on the New York Stock Exchange. Spotify's relatively unique direct listing could make today a very interesting one for this much-anticipated tech IPO. Here’s what we know so far.
Spotify is one of the world’s most popular music streaming services, competing directly against the likes of Apple (AAPL - Free Report) Music and others. The firm has raised billions of dollars in private funding over the years and currently makes roughly 90% of its money from premium customers, who pay monthly fees to stream unlimited music (also read: 3 Facts Investors Must Know Ahead of Spotify's Unique IPO).
Reference Price
Spotify's reference price is set at $132 by the NYSE, which would put the company’s initial value at roughly $23.5 billion. The reference price isn’t exactly what shareholders will pay, nor is it an official offering price.
Citadel Securities and Morgan Stanley (MS - Free Report) will use this price and analyze initial buy and sell orders in order to put together an opening price for the stock. The two investment firms are not traditional underwriters but will assist the Sweden-based music firm’s listing in a less overarching capacity.
Spotify will begin trading at a price that designated market makers believe buy and sell orders can be matched at a specific, set level.
The company’s direct listing could also lead to greater volatility than a traditional IPO because there are no large investors getting in on the stock at a premium price early on. Furthermore, unlike most listings, current Spotify shareholders can sell their shares on the opening day, with the potential to make a killing.
Spotify’s listing is one of the most anticipated tech IPO’s since Snap (SNAP - Free Report) . The company has also become a household name in this modern on-demand economy. However, the streaming music giant is going public at a volatile time for the market and technology stocks in particular.
Make sure to check back here for more on Spotify’s first day on the NYSE!
*A previous version of this article mentioned that Citadel is helping price and make a market for Spotify’s IPO. This has been corrected to Citadel Securities, which is a separate firm that is acting as the designated market maker *
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
What We Know About Spotify's First Day Of Trading, So Far
Tuesday marks the first day that music streaming powerhouse Spotify plans to start trading on the New York Stock Exchange. Spotify's relatively unique direct listing could make today a very interesting one for this much-anticipated tech IPO. Here’s what we know so far.
Spotify is one of the world’s most popular music streaming services, competing directly against the likes of Apple (AAPL - Free Report) Music and others. The firm has raised billions of dollars in private funding over the years and currently makes roughly 90% of its money from premium customers, who pay monthly fees to stream unlimited music (also read: 3 Facts Investors Must Know Ahead of Spotify's Unique IPO).
Reference Price
Spotify's reference price is set at $132 by the NYSE, which would put the company’s initial value at roughly $23.5 billion. The reference price isn’t exactly what shareholders will pay, nor is it an official offering price.
Citadel Securities and Morgan Stanley (MS - Free Report) will use this price and analyze initial buy and sell orders in order to put together an opening price for the stock. The two investment firms are not traditional underwriters but will assist the Sweden-based music firm’s listing in a less overarching capacity.
Spotify will begin trading at a price that designated market makers believe buy and sell orders can be matched at a specific, set level.
The company’s direct listing could also lead to greater volatility than a traditional IPO because there are no large investors getting in on the stock at a premium price early on. Furthermore, unlike most listings, current Spotify shareholders can sell their shares on the opening day, with the potential to make a killing.
Spotify’s listing is one of the most anticipated tech IPO’s since Snap (SNAP - Free Report) . The company has also become a household name in this modern on-demand economy. However, the streaming music giant is going public at a volatile time for the market and technology stocks in particular.
Make sure to check back here for more on Spotify’s first day on the NYSE!
*A previous version of this article mentioned that Citadel is helping price and make a market for Spotify’s IPO. This has been corrected to Citadel Securities, which is a separate firm that is acting as the designated market maker *
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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