When Spotify’s shares begin trading April 3, less than one-third of them will be available for sale, a move designed in part to prevent a deluge of shares from instantly hitting the market in the streaming service’s unusual initial public offering.
The company said in updated IPO documents Tuesday that roughly 55.7 million of its total 178.1 million outstanding shares will be available for sale on the first day of trading. Daniel Ek, Spotify’s co-founder and CEO, will be eligible to sell 15.8 million shares—less than a third...