Spotify Technology SA (NYSE: SPOT), the music-streaming subscription service, made its US market debut Tuesday as investors streamed in to turn up the volume on its share price.
The Swedish company opened trading on the New York Stock Exchange under the ticker "SPOT" and shares surged 25% above their reference price to US$165.90.
In lieu of a traditional initial public offering, the company listed directly to the market with what's called a reference price of $132 per share. That values the company at US$30bln.
People have asked me why @Spotify chose the @NYSE for this unique listing. The answer is simple: we excel at large, complex financial transactions like this. The NYSE market model allowed Spotify to confidently list their shares on the New York Stock Exchange— Thomas Farley (@ThomasFarley) April 3, 2018
Spotify currently has more than 157 million users in 65 countries, including 71 million Spotify Premium subscribers, according to the company’s press release. Spotify Premium, an ad-free version of the service, costs $9.99 a month.
Music legend Gene Simmons of KISS appeared on CNBC’s “Squawk on the Street” to share a musician’s perspective on the IPO. While Simmons praised the company and its management, he expressed concern about the way streaming has short-changed artists and the lack of regulations.
READ: Rock legend and Kiss star Gene Simmons joins Invictus MD Strategies as it opens trade in Toronto
“Artists have gotten the rug pulled out from under them and I’m shocked that the legislators in Washington D.C. haven’t taken the entire industry to task,” said Simmons.