10/09/2013 01:17 EDT | Updated 12/09/2013 05:12 EST

Shares of dance music promoter SFX Entertainment fall in initial public offering

NEW YORK, N.Y. - Shares of SFX Entertainment Inc. are falling in their trading debut Wednesday after the dance music promoter raised $260 million in its initial public offering.

The New York-based company produces dance music events around the world, including Tomorrowland, Electric Zoo and Life in Color. It also operates Beatport, an online music store that sells electronic dance songs.

SFX Entertainment priced its IPO at $13 per share. The stock is down $2.05, or 16 per cent, to $10.95 in afternoon trading.

The company says it will use the money it raised to pay for acquisitions. Its shares are trading on the Nasdaq stock exchange under the ticker symbol "SFXE."