Music streaming giant Spotify kicked off a new era in its company history on Tuesday with the launch of its hotly anticipated IPO on the New York Stock Exchange. Keep reading to see how much the company snagged per share on its stock market debut.
Click to read about ways you can save money with your streaming services, and learn more about the Spotify IPO.
Spotify, which was founded nearly 12 years ago in April 2006, has grown to dominate the market share for streaming services. With over 157 million active monthly users — including 71 million paid subscribers — the company was poised to finally go public after spending over a decade being privately held. Spotify is even expected to reach $6.4 billion in revenue this year alone.
Valued at around $29 billion, Spotify is regarded as the “big fish” in the music streaming pond, among competitors including Apple Music and the Jay-Z-owned Tidal service. Spotify’s next-largest competitor is considered to be Pandora — which is valued at a cool $1.2 billion, according to The Associated Press.
Spotify steered away from tradition, launching its offering in a direct listing format around 9:50 a.m. EST. The Spotify stock price kicked off at $165.90 — more than $30 over the NYSE’s estimated reference price for the stock.
The stock’s price wobbled throughout the day — fluctuating as high as $169 at one point — and wound up closing at $149.01.
Spotify’s first-day success wasn’t just pleasant for shareholders — it was record-breaking. Spotify’s day-one performance placed it firmly in the top 10 highest-ever market values, a list topped by Chinese e-commerce company Alibaba Group with a $234 billion value from its debut back in 2014, U.S. News reported.
Click to keep reading about what investments in streaming-service companies 10 years ago are worth now.