Teddy Weisberg, founder and President of Seaport Securities, has been on the floor of the NYSE for 46 years, so he was the perfect person to talk to today, after Swedish streaming music giant Spotify Technologies SA (SPOT) went public through an unprecedented direct listing Tuesday afternoon, and opened trading at $165.90 which valued the company at roughly $30.5 billion.
That the big bankers and lawyers didn't determine the initial price as is usually the norm.
"So it was a bit unusual to see an IPO at a such lofty price," said Weisberg.
Unlike a traditional IPO, Spotify's direct listing means the company will not be raising any additional money, with the offering allowing existing shareholders to sell shares to the public. With no traditional underwriters, there will also be no hefty fees for Spotify to pay. Recent trades on private markets had given the company a valuation as high as $26.5 billion, after accounting for outstanding stock options, warrants and restricted stock units.
But listen in to the video above to hear Weisberg's thoughts on the whole process.