Although Spotify Technology SA's (SPOT Daniel Ek has said his company's primary mission is to connect artists and their fans, its IPO on Tuesday is likely to be music to the CEO and co-founder's ears.
At the opening trade of $165.90 of its unusual direct listing on the NYSE, the streaming music giant was valued at roughly $30.5 billion, and its 35-year-old CEO was worth about $2.8 billion. Martin Lorentzon, 48, who co-founded the company with Ek back in 2006, had a net worth of at least $3.7 billion. Spotify closed trading on Tuesday at $149.60, pegging Ek's holdings at about $2.5 billion.
According to Spotify's SEC registration document, Ek owns 9.2% of the company, excluding warrants and options, while Lorentzon owns 12.25%. Together they control 80% of the voting shares of the company, however.
Other large Spotify investors include Sony Music Entertainment (5.7% stake), Tiger Global (6.9%) and Chinese internet giant Tencent Holdings (TCEHY (7.5%). Tencent acquired its stake in December.
Ek doesn't receive a base salary, according to the SEC document, but he is eligible for $1 million annual bonuses based on the growth of subscribers and active users.
In a company blog post on Monday, Ek touted the fact that he and his fellow executives have chosen to do things differently, including by not ringing any stock exchange bells nor doing lots of interviews.
"Normally, companies ring bells," Ek wrote. "Normally, companies spend their day doing interviews on the trading floor touting why their stock is a good investment. Normally, companies don't pursue a direct listing. While I appreciate that this path makes sense for most, Spotify has never been a normal kind of company. As I mentioned during our Investor Day, our focus isn't on the initial splash. Instead, we will be working on trying to build, plan, and imagine for the long term."