(Reuters) — The New York Stock Exchange on Monday set the reference price for shares of music streaming service Spotify 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.
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.
June 5th: The AI Audit in NYC
Join us next week in NYC to engage with top executive leaders, delving into strategies for auditing AI models to ensure fairness, optimal performance, and ethical compliance across diverse organizations. Secure your attendance for this exclusive invite-only event.
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.
(Reporting by Stephen Nellis in San Francisco; Editing by Sandra Maler and Himani Sarkar)
