San Diego-based MP3.com, which operates a Web site for downloading music, will market its shares to investors at $16 to $18 each, according to documents filed with the Securities and Exchange Commission. The company earlier said it would sell the shares at $9 to $11 each.
MP3.com also raised the number of shares to be sold to 12.3 million from 9 million. The additional 3.3 million shares are being offered to Arkaro, a unit of Groupe Arnault.
Groupe Arnault, which has interests in companies such as the luxury goods company LVMN Moet Hennessy Louis Vuitton, also has agreed to buy a total of $150 million in advertising, promotion, and marketing services from MP3.com over the next three years, the SEC filing said.
MP3.com will have 65.7 million common shares outstanding after the stock sale. Based on a share price of $18, the company's initial market value would be about $1.2 billion.
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