Pandora, a leading streaming music website, has recently witnessed a pretty strong demand for the company’s initial public offering, irrespective of the fact that its current business model is yet to come clean of viability concerns.
Almost $235 million were raised by Pandora and its venture capital investors on Tuesday after the company had priced its shares at $16 per unit.
Interestingly, the figure compares with the projected range of $10-$12 per share, which is considerably higher than the original $7-$9 range.
That places the overall market evaluation of Pandora at almost $2.6 billion, astonishingly 19 times higher than its last year’s sales which stood at about $137 million. The pricing per unit of Pandora stock rose from $7.26 to $23.26 as of 10.01 AM New York time.
Pandora currently offers less than 60 seconds of advertisements per 60 minutes of listening, which has made analysts, as well as investors feel that the company can ensure a profitable sell of its services on platforms such as social media and mobile phones.
“They probably can squeeze out more revenue per listener-hour, but it would nice to see that happen first before we put it in our 401(k)s,” Espen Robak, president of Pluris Valuation Advisors said, the Financial Times reports.