Despite concerns of the industry being too competitive, shares of online music software company and distributor Liquid Audio (Nasdaq: LQID) soared in their first day of trading on Friday.
Liquid Audio was expected to have a strong start despite the fact that some observers worry that there are too many formats for online music. Investors didn’t seem to be concerned on Friday when shares of Liquid Audio rocketed 21-9/16 to 36-9/16 — a gain of 143.75 percent — after the company priced its IPO at $15, well above its original range of $10 to $12.
It’s going to be interesting to see if Liquid Audio will be the top-performing online music IPO of this month. After all, MP3.com is expected to go public later this month, and the brand awareness the online music provider has established could lead to an even bigger pop. It’s true that the industry is crowded, but there seems like little doubt that MP3.com is going to be singing sweet music on IPO day.