Shares of headphone maker Skullcandy Inc rose as much as 17 percent in its first day of trading on the over-the-counter market before turning nearly flat by the close of the day.

Shares opened at $23, above its IPO price of $20. The stock closed the day at $19.81.

The offering raised $188 million in an initial public offering. To meet strong demand, Skullcandy had increased the size of its offering to 9.4 million shares from an initially planned 8.4 million, which it had planned to sell for $17 to $19 each.

Skullcandy offered 4,166,667 shares and selling stockholders sold 5,275,026 shares. Certain selling stockholders have granted
the underwriters a 30-day option to purchase up to an additional
1,416,253 shares of common stock to cover over-allotments, if any.
Skullcandy will not receive any proceeds from the sale of shares by the
selling stockholders. The shares trade under the ticker symbol “SKUL.”

Park City, Utah-based Skullcandy, which sponsors athletes and musicians including Snoop Dogg, competes with Sony Corp (SNE.N)(SNE.N) and privately held Bose Corporation, among others, in the headphones market.

Skullcandy has said it plans to use most of the net proceeds from the IPO to repay debt. Bank of America Merrill Lynch and Morgan Stanley were lead underwriters for the offering.