Spotify's reference price is set at $132 by the New York Stock Exchange

  • Spotify's direct listing is expected to start trading on the NYSE on Tuesday.
  • The NYSE set a reference price, but the actual opening public price will be set by buy and sell orders on the day.

The New York Stock Exchange on Monday set the reference price for shares of music streaming service Spotify Technology at $132.

(See CNBC's Tuesday coverage of Spotify's opening price here.)

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.

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 buy 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. 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 analyze investors' buy and sell orders
and then set an opening price for the stock.