Pandora Media ups IPO price range

Internet radio company increases share price range to $10 to $12

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Following what is sure to become the standard script for social media companies going public, Internet radio service Pandora Media has increased the share-price range and number of shares for its pending IPO.

In a Friday amended filing with the Securities and Exchange Commission, Pandora raised the price range for shares to $10 to $12 from the $7 to $9 announced in another amended filing last Thursday.

(Also see: You call this a tech bubble?)

Pandora initially filed to go public on Feb. 11, the same day Nokia announced its dramatic smartphone partnership with Microsoft. Then, on the same day Pandora's underwriters tried to stoke the IPO by announcing the share-price range, Groupon filed for its much-anticipated (and much larger) IPO. I wonder what blockbuster tech news we can expect on Friday?

In addition to raising the price range, Pandora is increasing the number of shares it will sell to 6 million from 5 million. Current shareholders will still nearly 8.7 million shares, from which Pandora gets nothing.

In the latest amended prospectus, Pandora said it expects to raise $57.6 million -- $80.1 million if the underwriters exercise an overallotment option for 2.2 million shares -- based on an offering price of $11 per share.

That's considerably higher than the $33.4 million to $48.7 million range previously estimated by Pandora, which is good because the company intends to spend at least $29.7 million from the IPO proceeds to pay accrued and unpaid dividends. At the low end of the previous range, that left it practically nothing from the IPO, dangerous for a company still operating at a loss and with heavy debt.

Pandora didn't list an IPO date in Friday's filing, but said it hoped to make the offering "as soon as practicable after the effective date of this Registration Statement." So I'm guessing next week.

Morgan Stanley and J.P. Morgan Securities are the lead underwriters. Pandora will trade on the New York Stock Exchange under the ticker symbol "P."

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