Oakland, Calif. – Shares of Pandora rose more than 25% by midday Wednesday after the personalized Internet radio service raised $235 million in its initial public offering that valued the company — which has yet to turn a profit — at $2.5 billion.
The company late Tuesday priced its 14.7 million shares at $16 each — well above its previous expectations of just $10-$12.
Most of the shares about 8.7 million, were offered by selling shareholders.
Pandora, which now counts more than 90 million registered users in the U.S., becomes the first Internet music firm to go public since Napster in 2002.
Shares began trading Wednesday on the New York Stock Exchange under the symbol “P.”