Digital Music ups its IPO range
The download music business is booming and that market trend is prompting Digital Music Group to up the price per-share for its initial public offering.
Digital Music Group, which has the rights to sell over 200,000 music recordings in digital format and works with online music stores such as Apple iTunes Music Store, RealNetworks, Napster, Wal-Mart Music, MSN Music and Yahoo Music, is raising its IPO range from $8 to $10 per share to $9 to $11.
The higher stock price could raise as much as $40.7 million in new working capital for Digital Music. The company says that it will use the capital to acquire digital rights to additional music recordings and for general expansion.
“We believe the recorded music industry is undergoing significant change, with the primary means of music distribution transitioning from physical formats such as compact disc to digital formats accessed over the Internet and wireless and cable networks,” the company says in its latest S-1 filing with the Securities and Exchange Commission.
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