Spotify's debut on Wall Street is expected to level the playing field for individual investors who are normally at a disadvantage in traditional listings.
The Swedish music streaming company skipped the conventional initial public offering and will list shares directly on the New York Stock Exchange (NYSE), with almost none of the safeguards provided by investment banks that would normally manage the process.
Analysts said the decision could make the company more vulnerable to swings in the music streaming service's share price.
"The pros of a direct listing, obviously that it's a lot cheaper, you allow yourself a little bit more control over where the shares are going, and obviously a lot of Spotify employees who may have been there since day one, their pay will have been in Spotify shares," Jeremy Cook, World First Chief Economist said. "They're finally allowed to make good on the promises and the investment they were given and allowed to cash out."
Spotify shares traded between US$95 and US$127 in private transactions in February, giving it a value of around US$20 billion.