Pandora files terms for $109.5 million IPO
(Reuters) - Online radio company Pandora Media Inc filed terms for $109.5 million IPO on Thursday, as it moves ahead with an offering that could tap into the recent investor enthusiasm for Internet stocks.
The company and its owners will sell 13.68 million shares at $7 to $9 apiece, according to an amended filing with the U.S. Securities and Exchange Commission. Pandora will sell 5 million of the shares.
At the mid-point of the proposed range, the offering would fetch $109.4 million, more than the $100 million the company had used as a preliminary amount in its first filing in February.
Oakland, California-based Pandora, which runs an online service that allows users to stream free music based on feedback from the listener, was launched in 2005. Pandora, unlike other online streaming services, uses algorithms based on the Music Genome project -- a database built by teams of musicians that analyzes songs -- to select a playlist for its users.
The Hearst Corp, which beneficially owns 5.73 percent of the company, is expected to sell 4.4 million shares, the filing said.
Earlier on Thursday, online daily deal site Groupon Inc filed with U.S. regulators to raise up to $750 million in an IPO, the latest in a series of Internet IPOs including LinkedIn Corp and Russia's Yandex.
Pandora, which had 94 million registered users as of April 30, more than doubled its revenue in the first quarter on strong advertising sales and steady subscription growth.
The Internet-radio company, which makes money mainly from selling airtime to advertisers and also from premium subscriptions under the Pandora One banner, reported fiscal 2012 first-quarter revenue of $51 million.
The company expects to list on the New York Stock Exchange under the symbol "P" after the offering. Underwriters are being led by Morgan Stanley, JPMorgan and Citi.
(Reporting by Himank Sharma in Bangalore; Editing by Joyjeet Das)
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