Pandora’s Successful IPO

Pandora raised $234.9 million in its initial public offering, according to Bloomberg. They sold 14.7 million shares at $16 each. The shares, which were offered by Morgan Stanley, JPMorgan Chase & Co. and Citigroup Inc. will trade on the New York Stock Exchange – probably tomorrow.

Pandora had set a price of $10-$12 for their initial offering, so out of the box and before the stock actually trades publicly they’re realizing a premium. That will likely escalate tomorrow as buyers who could not participate in the IPO start to purchase shares. Last week Pandora increased the number of shares as well as its target price to accomodate perceived demand for its highly popular Internet radio service.

With 90 million registered users, more than 20% of persons 12+ in the US using it, and the best brand recognition in its class, Pandora has timed its public offering exceedingly well. Despite many naysayers who claimed that the streaming service’s music licensing obligations are too burdensome to make it a smart investment, Pandora has plenty to celebrate. May they thrive…

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: