Shares of Pandora Media Inc. (NYSE: P) are rallying on their debut after the company’s successful IPO that saw its shares priced well above the recently raised pricing range of $10-$12. Pandora Media, which provides streaming music, priced its IPO at $16. At last check, Pandora Media shares were trading 19.50% higher at $19.12.

In a filing with the SEC, Pandora Media said that it expects to have 159.7 million shares outstanding following the IPO; however, the number could rise to 161.9 million if underwriters exercise over-allotment options. At the current price level, the company has a market capitalization of $3 billion. The company sold 14.68 million shares in the IPO.

In the past few weeks a series of technology and internet-related companies have successfully completed their IPOs. This includes the much talked about IPO of professional networking site, LinkedIn Corporation (NYSE: LNKD). Pandora Media’s successful IPO suggests that investors are still bullish on technology and Internet-related companies.

Pandora, which had 90 million registered users as of April, generates majority of its revenues from ads. This is in sharp contrast to Sirius XM Radio Inc. (NASDAQ: SIRI), the New York City-based satellite radio company, which generates its revenues primarily from subscriptions. In the most recent fiscal year, Pandora had revenue of $137.8 million and a net loss of $1.76 million. This is well below Sirius’ 2010 revenue of $2.8 billion.

Despite the differences, however, many investors are bullish on Pandora Media’s potential. One major reason for this is that the company still has room to grow unlike Sirius, which analysts believe will find it difficult to sustain its strong growth. According to Trip Chowdry of Global Equities Research, Pandora is likely to maintain its substantial market share leadership in the online radio space due to the ease-of-use of its service.

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