Pandora prices IPO at $ 16 per share
2011-06-15 08:59:57 GMT
NEW YORK (CNNMoney) - Internet radio site Pandora price its initial public offering at $ 16 action Tuesday night, according to the Wall Street Journal - almost double what should d first try.
Pandora, which n has never turned a profit, has filed to go public in February. At time, the company s expects to raise 100 million dollars. On June 2 Pandora define a target price range of $ 7 to $ 9 per share - it raises $ 10 to $ 12 per share last week.
L steady increase was a sign that the insurers IPO - including Citigroup (C, Fortune 500), Morgan Stanley (MS, Fortune 500) and JP Morgan Chase (JPM, Fortune 500) - expected high demand.
At $ 16 per share, offering to give Pandora company a market capitalization of 2.6 billion.
Pandora will begin trading Wednesday on the New York Stock Exchange under the symbol P Founded in 2000, the Music Genome Project, the site uses algorithms and user feedback to generate recommendations for its music listeners.
Pandora: The Music Machine loses money
Unprofitable: As with other tech IPOs this year, investors seem to be shrugging off the story of Pandora red ink. In its updated filing Tuesday said that Pandora it lost $ 6.8 million on revenue of $ 51 million in its first fiscal quarter ended April 30.
Pandora n has never turned a profit and the company said that s it expects to continue to lose the money by at least l fiscal 2012.
Its audience numbers are strong, however. In April, Pandora had 90 million registered members, against 80 million in February. Members accumulated 3.8 billion hours of listening to stream Pandora's song at the end of fiscal 2011.
But, as the audience grows, its largest cost: the fees that pays for music that it streams. Pandora's filing stated that its existing rates for royalty payments are good until in 2015, after which it will be necessary to renegotiate.
It is no guarantee that the rate of [new]... will enable us achieve sustainable profitability, said the filing.
The company does make the money in the one of the options it offers its listeners: a free, during water funded by advertising or a \premium\ plan priced at $ 36 per year, which offers better sound quality and no ads.
The lack of profitability n 2011 has not cooled the market hot technology IPO to date.
LinkedIn (LNKD), which became public last month, found that s it is profit slightly in 2010 and 2006 - but was otherwise in the red every year since its creation 2003. However, actions LinkedIn more than doubled in its infancy, the site gives first $ 9 billion of evaluation.
River Groupon s red ink is even deeper. The site deals with everyday filed for its IPO earlier this month, revealing that it lost $ 413 million in 2010 and lost almost $ 114 million euros in the first quarter of 2011.
Shares of Fusion-io (FIO), which makes storage systems for data-heavy high-tech companies like Facebook have jumped 18% in their public debut last week. L company lost nearly $ 32 million in its last fiscal year
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