SPOTIFY LIMITS SALES ON DAY 1 OF IPO

The drama is building in advance of 4/3, when Spotify pulls the trigger on its direct listing.

About 9% of the company will be unavailable to trade on day one because of restrictions such as employee vesting schedules and an agreement with shareholders including China’s Tencent, The Wall Street Journal reported.

Updated IPO documents show 162m of the streamery’s 178.1m total outstanding shares will be available for sale on 4/3 and company CEO Daniel Ek would be eligible to sell all of his shares if he chose to do so. You can see the filing here.

Per The Journal, Spotify aims to keep a leash on its direct listing, a rarely used way to go public. When the bell rings on 4/3, the market will set the share price rather than a financial institution. While demand is expected to be high—established, sector-leading tech companies don’t come around too often—limiting the availability of shares should help the price to hold steady.