Pandora Increases IPO Price Range

Sites include Pandora.com . Published on June 13th, 2011. Written by Debbie Parker.

Pandora increased the price range of its IPO by at least a third and also raised the number of stocks that would be sold to at least a million. This is in response to the demand from investors for shares in internet companies.

Pandora hopes to raise as much as $176.3 million with its new offer. If its shares are traded at $12 each then the popular online radio service could get $72 million from the proceeds while selling stockholders would get $104.2 million.

The company increased the price range for its shares to $10 and $12 from the initial $7 and $9. It is also offering 14.7 million shares, up from the initially announced 13.7 million shares. Pandora’s IPO is the latest among the internet companies in recent months. Some of the companies that has filed or completed their IPO are Groupon and LinkedIn.

Shares for professional networking service LinkedIn were offered at $45 in May and soared over $100 on their market debut. It closed at $94.25 with a trading volume of 30 million shares. At present the shares are traded around $72.

Pandora started in 2000 when it was still known as Savage Beast Technologies. It changed its name in 2005 when it unveiled an Internet radio service that allows users to stream music in the internet.