Pandora sold 14.7 million shares at $16 a piece, giving it a $2.6 billion valuation, Bloomberg reports.
The $16 share price is above the $10-$12 it was expecting. The stock starts trading Wednesday.
Pandora is losing money, but investors must like its revenue growth and believe the company can figure out profitability in the future.
BTIG analyst Rich Greenfield says that, when you factor in the outstanding stock options and the underwriters’ overallotment option (which will result in more shares being issued), Pandora was actually valued at $3.1 billion at $16 a share.
That’s about 12X this year’s estimated revenue of $250 million.
Related: BTIG: Don’t Buy The Pandora IPO!
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