Pandora Sets IPO Terms, Expect $8 Per Share
The online radio company, Pandora Media Inc. has filed terms for $109.5 million IPO on Thursday. The owners of Pandora will sell 13.68 million shares at $7 to $9 a piece ($8 average), according to an amended filing with S.E.C. (Securities and Exchange Commission).
Pandora was launched in 2005, and was the first online radio service that used a special algorithm based on the Music Genome Project (a database built by teams of music experts that analyzes songs) to select a playlist for users based on preferred and disliked songs.
The company had over 94 million users as of April 30th of this year, and doubled its revenue in the first quarter based on strong advertising and a continuous growth in Pandora One subscriptions. Pandora One is available for $36 a year and allows users to enjoy music entirely without audio or visual advertisements.
The company has raised over $65 million through venture capital funding since its inception. The company will be listed in the New York Stock Exchange under the symbol “P” after the offering, and will use Morgan Stanley, JPMorgan, and Citi as underwriters. What do you think about the IPO offering? Might you consider investing in Pandora’s stock or will you hold off, at least for now? Let us know what you think!