Video and audio streaming company
rocketed 150% on Wednesday, its first day of trading.
Shares of Seattle-based Loudeye surged to close at 40, up 24 from its initial offering price of $16 as more than 9 million shares traded hands.
Loudeye offered 4.5 million shares at $16, above its boosted price band of $13-15 per share. The firm had increased its price range from $8-$10 per share on Tuesday.
Loudeye plans to use the $72 million in proceeds from the IPO to expand beyond its Seattle headquarters, said Martin Tobias, founder and chief executive, in an interview. The company intends to build satellite labs in both Los Angeles and New York as well as Europe by the end of the year.
, which led the offering, gave investors a shot at roughly a 13% stake in the company.
The company said in December that it had sold $47.8 million to investors including
Tobias is quick to point out that the media companies, who have made a practice of exchanging advertising space for equity in nascent Web companies, paid "hard cash" for their stakes in Loudeye, which he regards as a solid endorsement. Because of the quiet period, Tobias could not say whether the investments by the media companies will become larger partnerships down the road.
In February, the company forged a pact with
that included a $5 million investment and a deal to promote its services.
Loudeye posted a net loss of $10.9 million for the year ended Dec. 31 vs. a net loss of $1.7 million in 1998. Net revenues climbed to more than $2.6 million from $286,000.
The company changed its name from
in December. Loudeye, founded in 1997, converts video and audio content from formats including AVI, VHS, Quicktime, and WAV to a variety of streaming media formats for Web publishing.