Pandora IPO generates $234.9M
Shares of Pandora Media opened at $20 Wednesday morning during the digital music service's first day of trading. Pandora priced its initial public offering at $16 and rose as high as $26. As of 9:44 am ET, Pandora shares are trading on the New York Stock Exchange at almost $23 per share, translating to a valuation of about $3.7 billion, The New York Times reports.
Pandora sold 14.7 million shares Tuesday, generating $234.9 million at a valuation of $2.6 billion. Underwriters Morgan Stanley, JPMorgan Chase and Citigroup retain the option to sell an additional 2.2 million shares.
Pandora touts more than 90 million users across the desktop and mobile platforms, but the company recorded a loss of $1.8 million in 2010 and has never posted an annual profit. Some analysts have expressed concerns that investors are rushing headlong into another dot-com era, making enormous bets on tech upstarts that have yet to show profitability. Last month, shares of professional networking platform LinkedIn doubled on their first day of trading--days later, shares of Russian search firm Yandex jumped over 55 percent at opening.
- read this New York Times article