Spotify shares jump 13% on stock exchange debut

Spotify shares jump 13% on stock exchange debut

Spotify shares jump 13% on stock exchange debut

Shares opened at the New York Stock Exchange at $165.90 a share, well above the reference price of $132.

Staff at the stock exchange also hung the Swiss flag outside instead of flag for Spotify's native Sweden. The Swedish company's use of a "direct listing" allows its early investors and employees to sell as many shares as they want whenever they want. However, reports suggest that Apple Music isn't far behind Spotify in the United States and is expected to surpass 36 million paid subscribers globally by the summer.

Less certain for investors, however, is Spotify's profitability.

The music-, podcast-, and video-streaming company Spotify took a historic step as the company completed a direct listing, bypassing the traditional initial public offering and ditching Wall Street underwriters.

Spotify Technology managed to record the largest direct listing in the history, receiving market valuation of 30 billion United States dollars. It offered no further details of the transaction, but if it was made at Spotify's closing price of $149.01, the sale would be worth $260.5 million. It went public and the valuation closed at $26.5 billion.

The valuation saw Spotify rising above Snap that itself was valued at $24bn following its IPO that raised $3.4bn earlier this year. Spotify claims that with scale it can start to negotiate better with music labels to get artists a better deal, as they still see minimal returns on streams, with the average "per stream" payout coming between $0.006 and $0.0084.

Lacklustre demand drags Indian March factory growth to 5-month low: PMI
Socio-Economic Research Centre executive director Lee Heng Guie said the PMI is another gauge to look at manufacturing activity . The PMI surveys give market players a better opportunity to assess the probability of a rate increase from the Bank of England .

Kate Middleton & Prince William's Parenting Quotes: 16 Times They Kept It Real
Similarly, when Kate was pregnant with Princess Charlotte , she gave birth 37 days after beginning her maternity leave. Meanwhile, Queen Elizabeth II went for a cheery spring ensemble in a fuchsia coat and a flower-adorned hat.

Where to watch Saturday's full moon, why is it special — Blue moon
The interesting fact is March 31 is the second time when we have the chance to see the Blue Moon since the beginning of the year. Wasn't there another full moon in March? When can we see the blue moon? The moon will be visible in United Kingdom at 7:30pm.

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

Daniel is the Founder and CEO of Spotify, where he sets the company's overall vision.

But Spotify faces rising competition, most notably from Apple, which launched its own service in 2015 to seize a slice of the booming streaming market. Our focus isn't on the initial splash.

Spotify has yet to turn a profit in its almost 10 years of existence, and the company even warned last week that it might see its sales growth slow in 2018, although it remained hopeful of achieving a lower annual loss.

Spotify has 71 million so-called premium subscribers, including users who have given the company a credit card number for a free trial. Investors will most likely weigh the company's potential for growth, considering its 12-year streak of failing to turn a profit.

Related news

[an error occurred while processing the directive]