Yesterday SMT shares slid over 3% or 14p to 428p, taking their decline over three months to 5%, closing at a 1.5% discount to net asset value.
CEO Daniel Ek, who owns just over 9 percent of the music streaming company, is now sitting on about $2.3 billion of Spotify stock at its current price. That followed several analyst reports that gave the company's stock lukewarm ratings.
"They are getting all the funding they need in the private market and they don't really need to go public as early", he said.
The company reported almost $5 billion in revenue for 2017, according to its initial prospectus, though still posted an operating loss of $461.3 million for the year. That was in line with informal trading on Monday, with shares changing hands at about $132, which would value the company at more than $23 billion.
The company's path to Wall Street traveled a road littered with failed music streaming service companies. That places the Swedish company at a valuation of $25 billion, well above Reuters' estimate of $19 billion, and ranks Spotify as the third-largest tech IPO of all time, according to Dealogic.
With over 71 million worldwide subscribers so far, Spotify aims to increase that number to as many as 96 million subscribers by the end of the year.
So in order to figure out how much is going out in royalties, one would have to know what Sony was carrying the Spotify stock at on its books before the digital services shares began trading. Negative sentiment toward the IPO rose as the date approached and the expected trading price climbed, said Pierce Crosby, StockTwits director of business development, based in NY.
Spotify debuts on the market with a boom, opening at $165.90 in an unusual "direct listing". The labels have said that they would share the profits with their artists but have offered few specific details about how those payments would be calculated.