Pandora At The Final Bell: $17.42
Initial Public Offering Was At $16
June 15, 2011 at 2:21 PM (PT)
PANDORA MEDIA finished its first day on WALL STREET at $17.42 a share on volume of 42.1 million shares. After peaking at $26 a share, PANDORA's stock price had settled down under $20 a share at a $3.25 billion valuation, reports a HUFFINGTON POST live blog. By 11a PT, the price seemed to stabilize at $18-$19. That's down from today's high of $26 a share, but up from its opening price of $16 a share at a $2.6 billion valuation. "I think the stock settles in here and doesn't move much for the rest of the day," GREENCREST CAPITAL analyst ANUPAM PALIT said. "I still think it is heavily overvalued."
At the start of the day, PANDORA set the pricing of its initial public offering of approximately 14.7 million shares of common stock at a price to the public of $16 per share. 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. In addition, PANDORA has granted the underwriters a 30-day option to purchase up to approximately an additional 2.2 million shares to cover over-allotments, if any.
The book-running managers of the offering are MORGAN STANLEY & CO. and J.P. MORGAN SECURITIES. Co-lead manager of the offering is CITIGROUP GLOBAL MARKETS, INC. and co-managers are WILLIAM BLAIR and COMPANY, STIFEL NICOLAUS WEISEL and WELLS FARGO SECURITIES.
Last week (NET NEWS 6/10), PANDORA increased the share price offering on its IPO from $7 to $9 to $10-$12, ADWEEK reports. However, some analysts questioned the size of that market cap, inferring that the online music service is riding a new tech bubble more.
PANDORA common stock will trade on the NEW YORK STOCK EXCHANGE under the symbol "P."
Follow its opening and first day on the NYSE here.
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[What do you think about PANDORA's IPO, and the future business model, based on what we know about streaming fees and advertising revenues? Comment, below!]