Online radio company Pandora Media Inc increased the proposed value of its initial public offering by almost 50 percent, hoping to catch investor fever that has taken Internet companies such as LinkedIn to new heights.

The Oakland, California-based company is seeking to raise $161.5 million, representing 14,684,000 shares priced at $10 to $12 each.

Last week, Pandora said in a filing that it planned to raise $109.5 million with the sale of 13,684,000 shares offered at $7 to $9 each.

The increase in the value of Pandora's IPO is a sign that tech offerings are still a hot part of the market, despite a broader downturn and postponements of other large IPOs like Ally Financial.

The S&P 500 index has lost more than 7 percent from its recent peak early last month.

Pandora, which runs an online service that allows users to stream free music based on feedback from the listener, has more than 90 million registered users.

The company makes revenue mainly from advertising and it is still not profitable. For the three months ending April, Pandora reported revenue of $51 million with a net loss of $6.8 million.

It is the latest hot Internet company to file for its public debut after a string of other high-profile peers that include online daily deal site Groupon.

(Reporting by Clare Baldwin and Jennifer Saba; Additional reporting by Rodrigo Campos Editing by Lisa Von Ahn and Matthew Lewis)