![]() ![]() The guide starting price that we usually have with a new share listing simply doesn’t exist, so whilst a degree of volatility is inevitable on day one – either as banks look to offload shares they have been obliged to buy as part of the underwriting process, or as those who missed out in the initial offer but still want a slice of the action pile in at any price – the first day of trade for Spotify has the potential to be in a different league altogether. A regulatory filing by Spotify shows that in 2017, this price ranged from $37.50 to $132.50 a share. The best bet as to what price the shares will be worth relates to the price shares have previously traded for privately. ![]() Spotify has however decided for a whole host of reasons to simply make the existing privately held shares – those which have been dished out to employees, record labels and investors – available on the open market. Banks will then underwrite the offer for a fee, providing a starting point for the shares on day one of trade. The usual approach is for a team of investment bankers to run an extensive ‘roadshow’ program with prospective investors across the board in a bid to ascertain what the market thinks the company is actually worth. ![]() Spotify’s unconventional route to market – does it guarantee a crazy first day of trade?įirst up, Spotify bosses have decided to take an unconventional route when they bring their shares to the market. But what’s all the hype about and are there any guarantees this can be the next great internet success story? Spotify, the music streaming service which emerged from Sweden almost a decade ago, will see its shares traded on the stock market for the first time this week. ![]()
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