Record-setting direct listing makes Spotify a $30 billion firm

Record-setting direct listing makes Spotify a $30 billion firm

Record-setting direct listing makes Spotify a $30 billion firm

Shares in music streaming service Spotify finished 13pc up on their first day on the NY stock exchange yesterday.

Tencent Music is reportedly preparing for an initial public offering later this year.

After several hours of anticipation Tuesday morning, Spotify's shares traded as high as $169 in their stock market debut before falling back slightly. The company said it had 71 million paid users as of December 31 and 156 million active users.

This is the second piece of good news for the UK's largest public equity investment trust which last month saw Dropbox (DBX.O) achieve an $11.5 billion valuation on its flotation on Nasdaq.

What's unusual about Spotify's direct listing on the stock market this week is that company insiders are not required to hold onto their shares - in what's called the lock-up - for an extended period of time.

Some market-watchers cautioned investors not to read too much into the first day of trading, given the mixed performance of recent tech IPOs and an increasingly competitive music streaming landscape.

Intel Core i9 Processor Comes to Mobiles, Laptops
It also has the new Intel Thermal Velocity Boost (TVB), which claims to offer a turbo frequency of up to 4.8GHz. The company mentioned it as the first mobile Intel processor with six cores and twelve threads.

Republicans warn of 'blue wave' in November after Rebecca Dallet's win
Dallet led Sauk County judge Micheal Screnock by more than 10 points with more than 70 percent precincts reporting. There are now six women on the seven member court.

Bob Rae, special envoy to Myanmar, to release report on Rohingya crisis
He said local villagers donated food to the Rohingya and that they were "happy" with the help. Reported byBenarNews, an RFA-affiliated online news service.

At the end of January Spotify was the largest of SMT's 39 unlisted holdings, with 1% of net assets valuing the stake at £65.6 million, up from £17.4 million in March 2016.

Spotify, on the other hand, has faced a heavy backlash from the music industry for revenue practices and is increasingly looking for alternatives to move its bottom line out of the red.

While Spotify has faced stiff competition from Apple Music over the past few years, it remains the market leader in music streaming with 71 million paying subscribers and 159 million monthly listeners across 61 countries. Each of the music giants is said to own around 4% of Spotify's shares, but they aren't required to disclose stock sales under SEC rules. Despite launching over ten years ago, the streaming service has yet to turn a profit, due largely to high operating costs, particularly the royalties it pays to artists and record labels to play their music.

Spotify's successful debut could pave way for other companies looking to go public without the aid of Wall Street underwriters.

It's not the first time fraudsters have targeted Spotify-an MBW investigation in February revealed how a Bulgarian playlist-maker scammed the Spotify payout system for months past year.

Normally, companies ring bells. But though Millennials are also a key demographic for Spotify, the Swedish company's listing did not draw disproportionate interest from that generation.

Related news