Shares of Musicmaker.com (Nasdaq: HITS), which allows customers to create customized CDs, soared after the company went public on Wednesday. The initial public offering was priced at $14, and the stock closed up 9-15/16 to 23-15/16, a gain of nearly 71 percent. The volume of more than 17 million shares traded was high, considering that only 8.4 million shares were available for trading.
There are concerns that the online music industry is too crowded, and Musicmaker.com’s IPO success may have eased some of the anxiety. This could turn out to be a big week for IPOs related to online music. Musicmaker.com competitor Liquid Audio could also go public this week.