Founder and former CEO Rick Alden

Skullycandy listed on the Nasdaq in the US last night with the stock opening at US$20 a share and rising to US$23.40 and finishing at US$19.86. The public offering raised $188.8 million for the company which now has a total valuation at over half a billion dollars. The company expected to sell 8.33 million shares at $17 to $19 but due to high demand ended up selling 9.44 million shares at $20. The money raised will be used to lower debt. Some analysts raised concerns that Skullcandy is in a market category with low barriers for entry meaning that cheaper rivals are already coming out of the woodwork, and are up against long standing, much larger competitors like Sony and Bose. However this discounts the influence of the musicians and athletes already signed to the brand as well as the heavy marketing and investment Skullcandy has made in its core audience… It wouldn’t be that easy to trump them right now. For more info, hit the Reuters write up here.

(Via Shop-Eat-Surf and Boardistan)