New York (Dow Jones) - Warner Music Group Corp. is cutting both the amount of stock it is selling and the price range in its initial public offering, an institutional investor told Dow Jones Newswires Tuesday.

The New York recording company, which will begin trading under the symbol WMG on Wednesday, is trimming the number of shares it will sell to the public to about 27.2 million from 32.6 million by eliminating shares being sold by current owners, said the investor, who spoke on condition of anonymity. In addition, it is cutting the price range for the deal to $19 to $20 a share from $22 to $24 a share, the investor said.

The offering is scheduled to price Tuesday night.

Warner Music's IPO has received criticism for the high valuation underwriters were giving the deal, as well as the way the money generated by the offering will be used. At the midpoint of its original range, underwriters pegged the company with a market capitalization of $3.29 billion, well above the $2.6 billion its owners paid Time Warner Inc. (TWX) for the company a year ago.

Also under the original terms, only $7 million of the money raised is going to the company's general coffers; the remainder is being used to pay down debts related to its purchase from Time Warner.

The change in IPO terms was first reported on CNBC.

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