Internet radio and music streaming service providers , Pandora, following the step of LinkedIn to offer IPO or initial public offering. Each share, released at a price of 16 dollars and offered at a price of 20 dollars at the opening of trading on the New York Stock Exchange on Wednesday (06/15/2011) morning.
The value of shares offered by Pandora has far above previous estimates that only 8 dollars per share as planned in late 2010 and 10-12 dollar two weeks ago. Pandora releases about 14.7 million shares for an injection of funds reaching 234.9 million U.S. dollars and a market capitalization of 2.6 billion U.S. dollars.
Value of its shares continued to rise in the stock. If it penetrates only 23 U.S. dollars, the value of its market capitalization would be of 3.7 billion U.S. dollars. This is a feat in itself considering for about a decade in operation, the company is minimal profit. To gain revenues, Pandora still rely on the ads. However, its services also offer a premium version for users who are willing to pay a subscription to listen to favorite songs without ads. However, with gross revenues 138 million U.S. dollars last year, Pandora still lost 1.8 million U.S. dollars.
Pandora is a music streaming service providers that are popular with users currently reaches about 90 million people. Early this single year, users Pandora has spent 3.8 billion hours to listen to favorite music from various labels which towed it. Growth of users doubled in the past year. Pandora service is currently only available in the U.S. despite plans to expand globally.
After LinkedIn and Pandora, a number of other dotcom companies preparing to go public, among others Groupon -deal daily service providers- , game developer Zynga; and Facebook social networking. Trends in the entry of Internet companies into the stock market to get serious attention from analysts and is touted as the second dotcom booming.