Dolby Laboratories IPO Raises $495 Million

Dolby Laboratories Inc.’s initial public offering Wednesday priced shares at the high end of an upwardly revised range, an underwriter said, raising $495 million for the audio technology company.

Dolby Laboratories’ IPO priced 27.5 million shares at $18 each, the underwriter said, giving the company a market capitalization of around $1.7 billion.

The San Francisco-based company, which has spearheaded developments in audio technology for nearly four decades, had originally filed to offer 27.5 million shares for $13.50 to $15.50 a share. The range was increased to $16 to $18 a share Wednesday.

IPO analysts said the pricing was no surprise given the company’s stature as a household name, solid earnings and promising revenue pipeline. Dolby earned $39.8 million on revenue of $289 million in the fiscal year ended Sept. 24, according to its filing.

Dolby’s principal stockholder, company founder Ray Dolby, had planned to sell 17 million shares in the IPO and expected to have a 69.8% stake in the newly listed company.

Dolby plans to list its shares on the New York Stock Exchange under the symbol DLB. The stock was expected to start trading today.