Pandora Media Inc (NYSE:P) stock jumped on today’s market after the company said that demand for the company’s latest stock offering was much higher than anticipated. Pandora announced that it would expand the stock offering from 10 million to 13 million and priced the shares at $25.
On today’s market, shares in the Internet radio company rose by 6.67 percent to sit at $27.32. That puts the company’s shares at a new all-time high. Pandora Media Inc (NYSE:P) has been trading at newer and newer highs since the 9th of September. Despite growing competition in Pandora’s business, the market is confident that the company can thrive in the months and years ahead.
Pandora Media Inc (NYSE:P) is in the Internet radio business. The company’s business involves playing advertisements to free listeners and charging a subscription for a premium service. The same model has been taken by the big tech players like Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL), who have both brought out their own Internet radio alternatives in 2013.
iTunes Radio, the offering from Apple Inc. (NASDAQ:AAPL) only went live yesterday with the launch of the new mobile operating system from the company, iOS7. Google launched its version of Internet radio, Google Play Music, earlier this summer. Pandora Media Inc (NYSE:P) has shown the potential of the business, and its facing competition as a result.
Today’s high is the most anybody has ever paid for a share of Pandora Media Inc (NYSE:P). The company has seen its stock increase by close to 200 percent so far in 2013. The company will use the money generated from its new offering to make acquisitions and design new technology.
The company expects the offering to bring in between $231 million to $280. Pandora Media Inc (NYSE:P) expects the offering to close around September 24.