Music streaming service Pandora has priced its IPO at $16 per share, valuing the company at $2.6 billion. The company originally set the range of its IPO at $7 to $9 per share, at a market cap of $1.3 billion; but upped the range last week to $10 to $12 per share, giving the company a valuation of $1.9 billion.

Pandora’s stock will begin trading tomorrow morning on The New York Stock Exchange under the symbol “P.” The company expects to raise as much as $235 million in the offerring and will offer 6,000,682 shares of its common stock with the selling stockholders offering 8,683,318 shares of common stock in the IPO.

Pandora initially filed its S-1 in February. A few weeks ago, the company released its most recent revenue numbers, which reflected an increase in both sales and usage for the internet radio service.

For example, Pandora is adding a new registered user every second and now has 94 million users. In Pandora’s fiscal year ended January 31, 2011, Pandora streamed 3.8 billion hours of radio listening. In the three months ending April 30, 2011 Pandora posted revenues of $51 million, up from $29.6 million during the same period in 2010.

Pandora follows in the footsteps of Fusion-io, LinkedIn and Yandex, which all increased their pricing significantly prior to going public. And the opening trading price for these companies’ stocks all rose as well. We’ll see where Pandora opens tomorrow.

Update: And here’s their official release on the pricing/offering set for tomorrow: