Shares in music streaming firm Spotify have surged after trading publicly for the first time on Tuesday in one of the year’s most anticipated market debuts.
The stock opened at $165.90 (£118) – more than a quarter higher than the $132 guide price set by the New York Stock Exchange on Monday.
That values the Swedish firm at about $29.5bn – far more than the roughly $21bn value of Twitter.
The shares later fell back to be trading at about $155.
The company used an unconventional process to launch on public markets: instead of issuing new shares, early investors sold existing holdings.
The decision gave the firm’s early backers a chance to cash in on its growth.
Traders huddled on the floor of the New York Stock Exchange on Tuesday morning, getting feedback from buyers and sellers to determine the price.
After the excitement of the launch, shares retreated, sliding below $160.
Spotify, which started offering its music service in 2008 as an upstart music platform, is now available in 65 countries.
It has added millions of users to its free-to-use ad-funded service in recent years, converting many of them to its more lucrative subscription service.
It is now the global leader with 71 million paying customers, twice as many as Apple Music, but is still yet to make a profit.
Spotify posted a loss of €1.23bn last year despite making revenues of €4bn.
Analysis: Kim Gittleson, New York Business Correspondent
Like an angsty teenager, Spotify has begrudgingly made its stock market debut.
The ten year old streaming music company eschewed the normal pomp that comes with a New York Stock Exchange listing, choosing not to ring the opening bell or even send Daniel Ek, Spotify’s co-founder.
Although a few traders sported vests with the Spotify logo and the traditional gigantic banner hung outside the NYSE building, most of the morning’s activity was focused on a very unusual task: trying to figure out the opening share price. The process had started at 6:30 in the morning and continued for hours after the opening bell.
The drawn-out process was a result of Spotify’s decision to go public using an unusual strategy known as a direct listing that cut out the bankers and meant early investors and employees could immediately sell their shares.
When the music finally stopped, shares in Spotify started trading at $165.90, valuing the company at close to $30bn.
That should net the company’s early founders many millions of dollars. Presumably, to quote fellow Swede Robyn, they’re somewhere else, still dancing on their own.