Spotify opens at $165.90, valuing company at nearly $30 billion

by Susie Olson April 4, 2018, 1:42
Spotify opens at $165.90, valuing company at nearly $30 billion

Shares of Spotify debuted at $165.90 and teetered in the first hour of trading. Spotify is going public at a time when there is pent-up demand for new tech IPOs.

Deciding to go public on Tuesday, 3 of April, 2018, via a floatation on the New York Stock Exchange market means that the company value could potentially be between $20 billion and $25 billion (N7.2trillion and N9 trillion) according to analytics.

After initially spiking as high as $US169, shares eventually slid to close at $US149.60, according to Markets Insider data.

The direct listing was seen as a test case for other companies tempted to list without selling new shares, and for bankers that could lose out on millions of dollars in underwriting fees for future initial public offerings. It's the stock-trading equivalent of opening a store and hoping people will just stop in. Drew Pascarella, lecturer of finance at Cornell SC Johnson College of Business, says that Spotify's unorthodox listing is a one-off, unique situation as the company does not resemble classic pre-IPO firms. Spotify announced, via a tweet published Thursday, that it now has 70 million paid subscribers.

Kane set to miss Chelsea game with injury
Both Chelsea and Spurs have Champions League ambitions, and this game will go a long way in deciding who plays in Europe next season.

"The attraction of the music-streaming service probably lies in Spotify's strong market share and rapidly growing revenues", Khalaf said. Estimates for the price of the shares once they hit the public market were between $160 and $220, CNN reported.

"Normally, companies ring bells". By 1:30pm EDT, the Wall Street Journal was reporting that Spotify was now valued at $30 billion, meaning that this could prove to be the third-largest IPO ever after Alibaba and Facebook.

"Spotify is not raising capital, and our shareholders and employees have been free to buy and sell our stock for years", 35-year-old chief executive and co-founder Daniel Ek said in a blog post Monday ahead of the listing of "SPOT" shares. "While I appreciate that this path makes sense for most, Spotify has never been a normal kind of company". "Spotify playlists have grown to 31 percent of user listening, highlighting an increase in platform engagement in addition to passive consumption".

The NYSE had set a reference price of $132 for the stock, though the actual price will be determined by shareholders. So far, none of have lived up to that title - though the competition remains fierce.


TOP News

Rare summit between North and South Korea to take place April 27
North Korean dictator Kim Jong Un is learning how to make friends and influence people, but to what end remains to be seen. Trump welcomed the meeting between Kim and Xi, while calling for continued pressure against the isolated regime.

Williamson announced Sunrisers captain
Cameron Bancroft , who was seen scraping the ball with a yellow object, has been suspended from global cricket for nine month. Smith and Warner were set to be among the highest earners in this year's edition with contracts worth £1.3m.

Duke of Edinburgh admitted to hospital for hip surgery
He did not attend a church service last week attended by the monarch because of a hip problem, a royal source said last week. After the second world war, he got married to Elizabeth II in 1947 and abandoned his Greek and Danish royal titles.

Capture of Afrin strengthens Turkey's position on Syria issue
The U.S. military says two coalition personnel have been killed and five were wounded by an improvised explosive device in Syria. Heller agreed that Idlib's fate would likely be determined by the worldwide powers entrenched in Syria's conflict.

Fact check: Trump's claims about Amazon's cost to taxpayers
The most recent year's losses of $2.7 billion are down from more than $5 billion in each of the prior two fiscal years. The postal service's contract with Amazon must be approved by regulators and must generate a profit for the service.

Rusty Staub, legendary original Expo and six-time all-star, dies at 73
When he played for the Montreal Expos, they called him Le Grand Orange , which is one of the greatest baseball nicknames ever. He made three straight All-Star teams with Montreal and hit a career-high 30 home runs for the last-place Expos in 1970.

Kevin Love, JR Smith to play against Pelicans
Jordan Clarkson added 23 points and Tristan Thompson had 14 rebounds in 21 minutes for the Cavs , who have won seven of eight. Clarkson was also a key performer for the Cavaliers as he scored 23 points on 9-of-13 from the field.

Children search for 1100 eggs in Spring Valley
Ranch Riders President Dolf said, "Started out with just our kids and they're grown up now". "I like going out and finding them. Eager children with baskets in hand lined a field near the Seguin Events Complex and fairgrounds on Saturday.

SpaceX rocket carrying communications satellites blasts off in California
To date, Iridium has completed five launches of 10 Iridium NEXT satellites, all with SpaceX from Vandenberg Air Force Base . Musk said SpaceX will conduct helicopter drop tests with payload fairings in the coming weeks to improve recovery efforts.

ICE Will Now Detain Pregnant Women Because of President Trump's Executive Order
Pregnant immigrants will still be eligible for release on a case-by-case basis, according to an FAQ published on ICE's website . Philip Miller, ICE's deputy executive director, told CNN that 506 women have been detained since December.