Spotify shares have started trading, valuing the leading music streaming service at $26.5billion. The company decided not to issue new shares and sold stocks held by its private investors.
Spotify was once a small startup company that has grown rapidly in recent years. Although it is considered the current market leader with over 71million paying subscribers, it is yet to make a profit.
Chief executive Daniel Ek admits: "We are still early in our journey and we have room to learn and grow."
Spotify spends more than what it earns to pay recording companies for the rights to play their music. But the company expects to start making profits in the coming years.
The company went public to fulfill its commitment to investors and give them the chance to cash in their investment. This forced the company to list it shares sooner than later.