Spotify, the leader in streaming music services worldwide, had its reference price set by the New York Stock Exchange at $132 as it starts trading on Tuesday.

The music streaming company is pursuing an unusual direct listing to reach the public markets in place of an initial public offering.

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.

Spotify, launched in 2008 and available in more than 60 countries, is the biggest music streaming company in the world and counts services from Apple Inc., Amazon.com Inc. and Alphabet Inc‘s Google as its main rivals.

The music streaming service has already swayed the music industry and listeners worldwide, with an online streaming service that makes millions of songs instantly available.

Reference Price

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.


Spotify’s Value

The music streaming company is poised to press the play button on a stock market float that will test investors’ faith in its future prospects.

Analysts said the performance of the music streaming service’s shares on its first day of trading on Tuesday would gauge market opinion on whether it can stave off fierce competition for music fans’ wallets and eventually make a profit.

The company is expected to be valued at $20-$25 billion, although the listing is also something of a plunge into the unknown for potential investors.

Unlike most companies that float, Spotify is not issuing any new stock, which means it has not set a price for its shares in advance.

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