One day before its highly-anticipated IPO, Pandora has upped its share price to $16 per share, valuing the company at $2.6 billion.
The price is well above its target price range of $10-$12, which itself was a 43% increase over its original $7-$9 target price. At $16 per share, Pandora will raise $234.9 million. The company will sell 14.7 million shares during its IPO, with the sale of an additional 2.2 million shares possible.
The rapid rise of Pandora's IPO can be partially attributed to the market's optimism for Internet companies. LinkedIn's stellar IPO has paved the way for other Internet companies to shoot for higher valuations. Unlike LinkedIn though, Pandora is not yet profitable, losing $1.8 million on $137.8 million in revenue in 2010.