RAIN NEWS FLASH 6/14: Pandora IPO prices at $16/share
WEBCASTER DOUBLES WHAT THEY’D HOPED TO RAISE JUST WEEKS AGOThe Wall Street Journal and Bloomberg are reporting this evening that Pandora set a price for shares in its initial public offering of $16 this afternoon, raising nearly $235 million from institutional investors — approximately double what they hoped to raise for the same number of shares a couple of weeks ago.
Pandora will begin trading publicly tomorrow under the symbol “P” on the New York Stock Exchange.
This stock price for the 14.7 million shares sold this afternoon, given the total of 160 million shares outstanding, gives Pandora an initial valuation of $2.6 billion, making it the country’s fifth-most-valuable radio broadcasting company in terms of enterprise value (after Sirius XM, Clear Channel Radio, CBS Radio, and the upcoming Cumulus-Citadel combo).
The company raised nearly $235 million after pricing the shares well above the top end of the expected range of $10-$12 per share. Pandora’s $16 share price is not only well above last week’s revised target, but double the company’s original $7-$9 target.
The L.A. Times writes, “The sharp boost in Pandora’s IPO price suggests the stock will surge Wednesday as investors who couldn’t buy the IPO get their first crack at the shares.” Read more here. There’s also more from VentureBeat here and Bloomberg here.
Look for more follow-up and analysis tomorrow in RAIN. Have comments? Write firstname.lastname@example.org.
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