NYSE sets Spotify reference price at $132
The company is pursuing an unusual direct listing to reach the public markets in place of an initial public offering
Earphones are seen on top of a smart phone with a Spotify logo on it in this February 20, 2014 photo illustration. PHOTO: REUTERS
The New York Stock Exchange on Monday set the reference price for shares of music streaming service Spotify Technology SA at $132.
Spotify is pursuing an unusual direct listing to reach the public markets in place of an initial public offering, and shares are expected to start trading on Tuesday.
Spotify listing could be roller coaster for retail investors
The reference price is not an offering price for the shares, nor is it the opening public price for shares of the Swedish technology company.
The opening public price will be determined by buying and sell orders collected by the NYSE from broker-dealers, the exchange said. Based on those orders, the opening price will be set based on a designated market maker’s determination of where buy orders can be matched with sell orders at a single price.
But the reference price will play a part in Spotify’s eventual pricing.
Spotify plans to list shares, fend off Apple and Amazon
Though Spotify has not hired traditional underwriters - a move that will save it millions of dollars in fees - it has hired Citadel Securities as a market maker to set the opening price on the NYSE, with help from Morgan Stanley.
While their roles will be limited, the reference price will be used while building the order book. Early on Tuesday, Citadel and Morgan Stanley will analyse investors’ buy and sell orders and then set an opening price for the stock.
Spotify is pursuing an unusual direct listing to reach the public markets in place of an initial public offering, and shares are expected to start trading on Tuesday.
Spotify listing could be roller coaster for retail investors
The reference price is not an offering price for the shares, nor is it the opening public price for shares of the Swedish technology company.
The opening public price will be determined by buying and sell orders collected by the NYSE from broker-dealers, the exchange said. Based on those orders, the opening price will be set based on a designated market maker’s determination of where buy orders can be matched with sell orders at a single price.
But the reference price will play a part in Spotify’s eventual pricing.
Spotify plans to list shares, fend off Apple and Amazon
Though Spotify has not hired traditional underwriters - a move that will save it millions of dollars in fees - it has hired Citadel Securities as a market maker to set the opening price on the NYSE, with help from Morgan Stanley.
While their roles will be limited, the reference price will be used while building the order book. Early on Tuesday, Citadel and Morgan Stanley will analyse investors’ buy and sell orders and then set an opening price for the stock.