Spotify finally officially became a public company Tuesday (April 3), opening up its shares for trading on the New York Stock Exchange shortly after 12:45 p.m. EST. And while its share price fluctuated throughout the day — as was predicted due to the company’s decision to do a direct listing rather than a more traditional IPO — there is plenty of good news its investors to cheer about.
Spotify closed the day at $149.95 per share, according to MarketWatch, with a valuation of around $27 billion. That makes it among the largest public offerings for a tech company in the history of the NYSE. For reference, Facebook’s first-day valuation was $81.74 billion in May 2012 and Alibaba’s first-day valuation was $233.89 billion in September 2014.
The Wall Street Journal, in a story published 25 minutes before trading ended for the day, estimated that Spotify would finish at $150 a share — a $26.72 billion valuation.
That share price at the closing bell was also up 13.59 percent over the pre-debut price of $132 per share that the NYSE offered as guidance on Monday. In the hours leading up to Spotify’s debut in the early afternoon, that price had risen steadily, with Spotify officially opening at $165.90 per share — valuing the company at $30 billion on its debut — and reaching as high as $169 in its first 10 minutes before steadily declining as the day went on.
While some analysts could point to its closing price as a decline of around 9 percent from that opening $165.90 mark, the company and its investors will not be complaining. Co-founder, chairman and CEO Daniel Ek, in an interview given earlier in the day on CBS This Morning, expressed cautious optimism about the then-impending debut, saying that it’s just early days for the company. He added, “I really just feel like we’re in the second inning.”