Digital Music Group (DMGI) is set to IPO this week. Here is the background as reported in the Washington Post:

WASHINGTON -- Digital Music Group Inc. on Thursday increased the estimated price range for its pending initial public offering to $9 to $11 per share from $8 to $10.

Digital Music, based in Sacramento, Calif., provides digital music recordings to online music stores.

Digital Music intends to use net proceeds from the IPO for the acquisition of digital rights to music recordings, acquisition of property, plant and equipment and for general corporate purposes, including working capital and funding operating expenses.

I-Bankers Securities Inc. and FTN Midwest Securities Corp. were listed as the underwriters for the offering. The underwriters may also purchase up to an additional 555,000 shares to cover overallotments, the filing said.

For the nine months ended Sept. 30, 2005, Digital Music posted a net loss of $1.2 million on total revenue of $225,535.

The company plans to list its shares on the Nasdaq Stock Market, under the symbol DMGI.

Many of the original investors are based in Sacramento and Stockton. So let's watch what happens this week. You can set a Google alert on DMGI and get notified when there is any news.

Gillian Parrillo
The Sacramento Executive