LONDON/NEW YORK, April 3 (Reuters) - Spotify SPOT.N shares began trading on the New York Stock Exchange on Tuesday with an opening price of $165.90 per share, nearly 26 percent above the reference price of $132 a share set by the NYSE late on Monday.
The streaming music leader has structured the stock market listing to allow existing investors to sell directly to the public while offering no shares of its own, in a test case being closely watched by other well-funded multibillion-dollar tech companies with no immediate cash-raising needs.
TOMAS OTTERBECK, ANALYST, REDEYE FINANCIAL, STOCKHOLM
Spotify is just as hyped as (the IPOs of) Twitter and Snap.
Its the same with Spotify.
Private investors and traders will probably trade the share up substantially at the beginning.
It will be more interesting to see what happens to the share in the coming two to three days.
STEPHEN MASSOCCA, SENIOR VICE PRESIDENT, WEDBUSH SECURITIES, SAN FRANCISCO
Obviously it was kind of an interesting avenue. It wasnt your typical IPO. But it has done well. I am surprised to see that the buying has been pretty good here. The whole tech selloff over the last few days doesnt appear to be impacting this at all, and you would think people might have a little reticence into buying these type of names given the downdraft that companies like Facebook and Google have experienced. The trading has been more positive than I initially thought it would have been.
KIM FORREST, SENIOR PORTFOLIO MANAGER AT FORT PITT CAPITAL GROUP IN PITTSBURGH
"It's an interesting way to allow people who already hold the stock to monetize it. It's interesting in that they're not doing it to raise money."
"There's a lot of froth and excitement going on today. Maybe we're going to have FANGS instead of FANG."
"Why people are really hot for it is because they love momentum. Its in that (FANG) industry space. Its technology providing a service people may not have to pay for. But it does have a fee model and that makes it interesting. They seem to have thrived and not only survived."
"It took longer to open than a normal IPO. Its a good thing to try to explore this and it doesn't seem to have hurt investors at least a half an hour into trading," she said. "You're holding a party and you don't know if anybody's going to show up. Its a big expensive party."
CHI-HUA CHIEN, MANAGING PARTNER, GOODWATER CAPITAL, SAN MATEO, CALIFORNIA
"It's a fair market price. It's not manipulated or set by any puts and takes by banks or institutional investors. That's the real price, and I think that will be revealing to a lot of companies." (Compiled by Alden Bentley)