Pandora, the leading Internet radio service in U.S., set a debut price for its initial public offering. It seeks to raise a maximum value of US$141 million, AFP reported.
The company filed an updated S-1 document to the Securities and Exchange Commission (SEC) yesterday, which indicates it is planning to offer 15.7 million shares at $7 to $9 per share, Forbes reported.
Pandora made a request to be listed under the ticker symbol “P.” It yet to specify when it will start selling its shares on the New York Stock Exchange. The company is going public in a bid to seek the money it needs to expand and become profitable, as well as to deal with the operating deficit.
“A key element of our strategy is to aggressively increase the number of listeners and listener hours to increase our market penetration,” Pandora stated in its original SEC filing. “However, as our number of listener hours increases, the royalties we pay for content acquisition also increase.”
In the last fiscal year, Pandora lost $1.8 million on $137.8 million in revenue. It paid out about $69.4 million in fees and royalties to music labels and publishers. Other expenses included marketing and administrative, Los Angeles Times reported.
Also yesterday, Groupon filed for an IPO.