Skullcandy upsizes IPO, prices above range

Tue Jul 19, 2011 7:23pm EDT

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(Reuters) - Headphone maker Skullcandy Inc (SKUL.O) upsized its initial public offering on Tuesday and priced it at $20 per share, above the expected range.

The company, which is known for its headphones made out of bold color schemes, and loud patterns, increased the offering size to 9.4 million shares and raised $188 million. The company had earlier planned to sell 8.4 million shares in the $17-$19 range.

The Park City, Utah-based company sold 4.17 million shares in the IPO, while certain stockholders sold 5.28 million shares.

Tuesday's pricing, values the eight-year-old company at $535.6 million.

Skullcandy, which sponsors athletes and musicians including Snoop Dogg, and its motto is "Every revolution needs a soundtrack" and competes with privately held audio equipment maker Bose Corporation and Niche players like Klipsch and Altec Lansing.

It also competes with Plantronics (PLT.N) and Harman International Industries (HAR.N).

The company, which expects to use the proceeds from the share sale to primarily reduce debt, posted a 36 percent increase in net sales of $160.6 million in 2010 but recorded a 69 cents a share loss hurt by increase interest expenses.

For the first three months of 2011, the company recorded net sales of $36 million and a 5 cent a share profit.

BofA Merrill Lynch and Morgan Stanley were lead underwriters for the offering.

(Reporting by Himank Sharma and Brenton Cordeiro in Bangalore; Editing by Anthony Kurian and Lisa Shumaker)

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