Pandora is going public today, an IPO that executives at the music streaming service are palpably excited about. And today will show if investor excitement is on the same level.
Yesterday, Pandora priced its IPO at $16 per share, which would effectively value the company at $2.6 billion – higher than the company’s initial price range of $7 to $9 per share ($1.3 billion valuation).
Taking a page from LinkedIn’s IPO playbook, last week Pandora once again gave its price range a boost, this time up to $12 per share ($1.9 billion valuation).
But as of Tuesday, $16 was the magic price – a clear indication of the company’s optimism and penchant for investor hype.
Beginning this morning with the open of trade on The New York Stock Exchange, Pandora’s stock will trade under the symbol “P.” Pandora expects to raise upwards of $235 million in the offering.
A total of approximately 6.0 million shares are being offered by Pandora and a total of approximately 8.7 million shares are being offered by selling stockholders, the company said in a press release Tuesday.
Pandora says it has also granted the underwriters a 30-day option to purchase up to approximately an additional 2.2 million shares to cover over-allotments, if any. Pandora will not receive any proceeds from the sale of shares by the selling stockholders, the company revealed.
