Spotify achieved a valuation of $26.5 billion after the first day of its shares being traded on the New York Stock Exchange, following a direct listing which Reuters reported was the largest on record.
The music streaming company, which is yet to post a profit, went public through an unconventional route, after confidentially filing for a direct listing with US regulators in January. At the end of the first day’s trading, Spotify had a higher market value than Snap, which went public in 2017.
Spotify faces competition from Amazon Music and Apple Music, among others, though it has more paying subcribers than its rivals: 71 million users pay for Spotify, while Apple Music counts 46 million subscribers and Amazon around 16 million.
Google is also a competitor but does not reveal subscriber figures.
A day before the IPO, Spotify CEO Daniel Ek reiterated in a blog post the company “is not raising capital, and our shareholders and employees have been free to buy and sell our stock for years.” As a result, the listing “doesn’t change who we are, what we are about, or how we operate,” he added.
Last month Spotify added Israel, Romania, South Africa and Vietnam to the list of countries it is available in, bringing the total to 65.
Telia divests stake
Not long before the IPO, Swedish operator Telia announced it completed a total divestment of its 1.4 per cent stake in Spotify for $272 million: it bought the holding for $115 million in 2015.
“We wish Spotify all the best in its next phase as a truly global listed company,” said Johan Dennelind, Telia’s president and CEO, adding: “Spotify has been a fantastic investment for Telia Company, both from a direct return and a partnership perspective.”