A direct listing by Spotify Technology SA, owner of the world’s largest paid music service, opened at $165.90 per share as trade tensions and Trump’s tweets pushed tech stocks lower in recent days.
What made the initial listing according to CNBC:
This time, Wall Street isn't taking a central role in the process. While Spotify has some bank advisors, it did what is called a direct listing, allowing it to trade on an exchange without all the regulatory hassles and expensive bankers that are the hallmarks of the traditional IPO. NYSE changed its rules to allow the listing to move forward.
After waiting all morning, Spotify began trading just after 12:30 p.m. ET at $165.90 a share, valuing the company at about $29 billion. That is up 25.6 percent from a reference price of $132, though because banks weren't involved in underwriting the offering, the stock wasn't bought or sold at that lower price.
According to a filing from the company, "there could be greater volatility in the public price of our ordinary shares during the period immediately following the listing," and that "such differences from an underwritten initial public offering could result in a volatile market price for our ordinary shares and uncertain trading volume and may adversely affect your ability to sell your ordinary shares."