New York Stock Exchange sets Spotify reference price

New York Stock Exchange sets Spotify reference price

The New York Stock Exchange has set the reference price for Spotify shares: $132.

That would give a market valuation for the streaming giant of $24 billion (£17.1 billion) - not far below the widely predicted $25 billion (£17.8 billion).

Spotify Technology SA’s shares will begin trading later today as the company launches its IPO with a direct listing. The company has already warned that the unusual approach could result in share price volatility.

The move comes almost 10 years after Spotify launched in Stockholm.

Ahead of today’s IPO, Spotify CEO Daniel Ek said: “I have no doubt that there will be ups and downs as we continue to innovate and establish new capabilities.”

The untraditional route to going public could mean that it takes some time for an opening price for the stock to be decided. Citadel Securities has been appointed by Spotify as the market maker to set the opening price, with consultation from Morgan Stanley.

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