Inc. –

SAN DIEGO – Inc, an Internet-based music distributor that shrinks music files to allow musicians to widely distribute and promote their work and consumers to access the music, went public July 21. The company sold 12,347,233 shares at $28 per share, above its $24 to $26 filing range.

The company’s venture backers include Sequoia Capital, Cox Interactive Media and CMS Interactive Media, Credit Suisse First Boston, BancBoston Robertson Stephens, Hambrecht & Quist and Charles Schwab & Co. Inc. underwrote the offering, which left 66.64 million shares outstanding., which was incorporated in March 1998, operates a Web site that contains more than 100,000 songs from nearly 20,000 artists, which the company said is one of the largest collections of digital music available over the Internet. Since inception, the company has received 89% of its revenue from selling advertising space on its Web site and additional revenue comes from e-commerce and off-line advertising.

The approximately $326.5 million raised in the offering will target sales and marketing efforts and be used to invest in complementary businesses and technologies.

Sequoia Capital General Partner Mark Stevens joined the company’s board of directors in January, followed in June by David Easterly, chief operating officer of Cox Enterprises. – Selected Financial

(in thousands, except per share data)

March 17, 1998 (inception) Three Months Ended

to December 31 1998 March 31, 1999

Total revenue 1,162 6,658

Net income (loss) -219.7 -1,406

Net income loss per share 0.01 -0.05