Spotify's Unusual Liquidity Event Mints New Wealth

Tom Burroughes

4 April 2018

Spotify’s stock market debut has made its founders two of the wealthiest people in Sweden, adding to a trend that has seen IPOs create more largesse for beneficial owners in recent months, as figures show.

The $21 billion equity market arrival for the music-streaming platform means chief executive Daniel Ek is worth $2.4 billion because of his 9 per cent economic stake in the business (source: Bloomberg). His co-founder Martin Lorentzon’s 12 per cent stake in the business will amass him a fortune of $3.4 billion. Trading in Spotify Technology, to give its full name, started yesterday. The New York Stock Exchange on Monday set the reference price for shares at $132.

The arrival of , a data and analysis firm, in examining trends in this space.

One result of Spotify’s share debut is that bankers including Morgan Stanley and Goldman Sachs are expected to earn less than they would from a more conventional IPO float, reports said.