By Lisa Marie Segarra
April 3, 2018

Spotify shares closed at about $149 on Tuesday following the company’s first partial day of public trading, giving the company a market capitalization of $26.5 billion.

Spotify’s stock was closely watched throughout the day because of the unusual process behind the company’s listing. Instead of a typical IPO, which gives companies a chance to raise money, Spotify opted for a direct listing, which simply offers existing stockholders the chance to cash out on their investment.

Furthermore, Spotify did not work with an underwriter on the listing. That can help a company save in underwriting fees and make the process more accessible to the public. But it also exposes firms to potential volatility, as underwriters can help stabilize a stock’s day-one performance.

Given the relative success of Spotify’s first day on the public markets, there’s a chance more private companies could follow the company’s lead and choose to go with a direct listing instead of a traditional IPO. But the allure of raising money through a standard IPO will likely prove a powerful draw.

Here’s how Spotify’s five biggest pre-existing investors did during the company’s first day as a publicly traded firm, based on their holdings before the day began.

Spotify Co-founder Martin Lorentzon (12.2%)

Martin Lorentzon helped found Spotify more than a decade ago in Stockholm in 2006. He currently serves as Spotify’s vice chairman and has a 12.2% stake in the company, which is now worth about $3.2 billion.

Tencent (9.1%)

Spotify and Tencent Music Entertainment, which is the music subsidiary of Chinese conglomerate Tencent Holdings Ltd., made investments in one another at the end of last year. Tencent’s stake in Spotify is now valued at $2.4 billion.

Spotify CEO Daniel Ek (8.8%)

Spotify co-founder and CEO Daniel Ek started the company in 2006, before it officially launched in 2008. Ek’s 8.8% stake in Spotify is now worth $2.3.

Tiger Global Management (7.2%)

Investment firm Tiger Global Management is the fourth-largest Spotify stakeholder with a 7.2% stake in the company. That’s now valued at about $1.9 billion after Tuesday’s direct listing.

Sony (5.7%)

Several record companies have a stake in Spotify, but Sony’s 5.7% stake is the largest among them. Its share of the company is now worth $1.5 billion.

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