Shares of Pandora Radio, an automated music recommendation service, dropped below their offer price on Thursday.
Pandora was first offered on the New York Stock marketing on Wednesday for $16 per share but it plunged to $13.26 on Thursday, losing almost 24 per cent. They bubbled to $26 temporarily in early trading Wednesday, but it didn't last long and ended at $17.42 for Wednesday.
Pandora gained more than 90 million users in the United States since it was established in 2000. However, Pandora has yet to make a profit and some financial analysts are pessimistic about the outlook of the firm since the company has to pay huge money for music license.
Analysts think fluctuation on Pandora's share will make investors lose interest in buying Pandora's share.
However, Pandora has initially raised $235 million and had a market value of $2.55 billion at its offer price. Pandora's market capitalization was more than what many analysts valued the firm.
Pandora is selling 6 million of the shares in the IPO, while existing shareholders are offering 8.7 million. 19:10 b.kim