Friday, 24 June 2011

Pandora Pulls a LinkedIn, As Tech-Starved Investors Gorge on IPO


How starved are investors for high-profile, high-growth Internet companies?


Hungry enough to lift the value of Pandora to just under $4 billion in an hour of trading for the first time on the New York Stock Exchange under the ticker symbol “P.”


That would be close to $24 a share right now, although the music streaming company — which was once near death — has risen as high as $26 at one point so far this morning.


In any case, its stock opened at $20 a share, well above the $16 pricing yesterday, which was already a far cry from its $9 price when it first announced its IPO.


Insiders unloaded about nine million shares in its initial public offering of the close to 15 million sold to the public, with the company raising $235 million from its six million shares sold.


The high price echoes the recent IPO of LinkedIn, which priced a lot lower than the prices the stock fetched as soon as it hit the market.


Shares on the social business network jumped 100 percent out of the gate a month ago to above $100.


LinkedIn has now settled in at about $75 a share, which is still high.



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