The electronic dance music craze will face a referendum of sorts on Wall Street this week.

SFX Entertainment, a young company that has bet its fortunes on the continued popularity of dance festivals like TomorrowWorld and Electric Zoo, priced its initial public offering late Tuesday at $13 a share. The I.P.O., which raised $260 million, values SFX’s business at $1.05 billion, according to a person briefed on the matter.

Demand for the I.P.O. was strong, with the share price at the top of the range the company announced two weeks ago. SFX also sold 20 million shares, instead of the 16.7 million it initially planned.

The company is set to start trading on the Nasdaq stock exchange on Wednesday, under the ticker symbol SFXE.

While electronic dance music, or E.D.M., has operated on the margins of the music world for decades, it has recently become the industry’s fastest-growing genre. One recent study valued the global dance market — including record sales, live performances and corporate sponsorships — at $4.5 billion annually.