Shares in Sweden’s Spotify soar after largest direct listing

Shares of Swedish music streaming platform Spotify Technology SA ended up 12.9 percent on their first day of trade on the New York Stock Exchange, a smooth debut that could pave the way for other companies looking to go public without the aid of Wall Street underwriters.

Spotify shares opened at $165.90, up nearly 26 percent from a reference price of $132 set by the NYSE late on Monday. The stock ended the session at $149.01, valuing the world’s largest streaming music service at $26.5 billion.

The direct listing by the Stockholm-founded company was the largest on record. Spotify now has a higher market value than Snapchat owner Snap Inc, which went public last year. Facebook Inc and Alibaba Group Holding Ltd remain the largest tech stock listings in recent years.

After the listing, Spotify has an enterprise value - which takes into account cash and debt on the company’s balance sheet - of about five times its 2017 revenue of $5 billion.