Spotify On Wall Street: Opens At $165.90, Closes Under $150

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The New York Stock Exchange had on Monday set a so-called reference price of $132 for Spotify's shares.

Today's listing was what's called a direct listing, which is a speedier and less expensive process compared to an initial public offering.

"It's a fair market price". Under a plan being tested out by the NYSE, Spotify's current stockholders are selling all of the shares in the offering.

Since launching its streaming music service a decade ago, the Stockholm-founded company has overcome heavy initial resistance from big record labels and among some major music artists to transform how the industry makes money.

Ek added: "Normally, companies don't pursue a direct listing".

Following news that Spotify has gone public, Ek appeared on CBS This Morning and touched upon the Swift saga. "This bodes well for continued brand loyalty, which is a big factor in the stickiness of music services".

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"The attraction of the music-streaming service probably lies in Spotify's strong market share and rapidly growing revenues", Khalaf said. And it feels like the right time to pause and acknowledge the thousands of Spotify employees around the globe who helped build out the Spotify ecosystem while staying true to who we are and what we believe.

It faces tough competition from the second-largest streaming company Apple Music, which has 38 million subscribers. Alphabet Inc's (GOOGL.O) Google does not release paid subscriber numbers for Google Play Music.

"A couple thousand people totally dedicated to the task of maximizing the value of music and delivering the most compelling product to its users is going to beat a company for whom it's not part of the core business", Ken Parks, the chief content officer at Spotify from its founding until 2015, previously told CNN.

That represents a premium to smaller rival Pandora Media Inc (P.N), which has an enterprise value-to-sales ratio of one, but is far less than a comparable ratio above 10 for Netflix Inc (NFLX.O) and Dropbox Inc (DBX.O). The firm did caution that SPOTIFY's unusual direct listing could lead to "unusual trading dynamics in the days and weeks following the APRIL 3rd listing".

The opening public price was determined by buy and sell orders collected by the NYSE from broker-dealers. A huge number of shares hitting the market all at once could sink the stock price.

Almost 30 million shares had changed hands by the end of regular trading hours.