Today's IPO listing of Pandora Media Inc ( NYSE: P ), an online radio service provider, jumped on debut and up more than 27% with a share volumes of 23 million shares.

The stock kicked off trading Wednesday morning on the New York Stock Exchange, surging to $23.18 in early trades.

The company said in its filing with the Securities and Exchange Commission that it expects to have about 159.7 million shares outstanding following the offering, though that number could rise to 161.9 million if underwriters exercise their over-allotment options.

Pandora sold 14.68 million shares in the offering. About 6 million of those shares came from the company, representing a total value of about $96 million under the offering price. The remaining 8.68 million shares came from selling shareholders.

Lead underwriters of the offering were Morgan Stanley, J.P. Morgan and Citigroup.

The company provides Internet radio services under both a subscription-based and advertising model. The services make use of both user listening patterns and a technology called the Music Genome Project to match up music for listeners tastes.

Pandora has more than 90 million registered users as of April. Most listeners use the service free-of-charge; about 87% of total revenues for the fiscal year ended Jan. 31 came from the company’s ad-supported services.

Total revenue surged by 150% to $137.8 million in the most recent fiscal year, with a net loss of $1.76 million compared to a loss of $16.75 million in the previous year. The company generated about $3.2 million in cash from operations in the most recent fiscal year, compared to a deficit of $27.5 million in the previous year.

One risk facing Pandora is an increase in the costs of music licensing. Content acquisition charges are the largest expense item on the company’s income statement — comprising about 50% of total revenue in the Jan. 31 fiscal year. Royalty rates for music performance are expected to grow by more than a third by 2015